"Community is at the heart of Borough Market," said the market's managing director Darren Henaghan.
"This event is a perfect example of how our traders pull together to help support communities – whether that be local or beyond. We are proud to be able to support such an important occasion and cause."
In addition to the bake sale, there will also be a charity auction which will feature a pizza oven, cookbooks and a Fortnum & Mason Christmas hamper, and an online raffle.
There have been scores of individuals and fundraising initiatives across the world raising money to aid Lebanon.
Former professional cyclist Lance Armstrong led a group of cyclists through the Lebanese capital earlier this month in a effort to mark the two-month anniversary of the devastating port explosion.
Armstrong, who was stripped of all his titles in 2012 following a doping scandal, took part in the "Bike for Beirut" along with dozens of other cyclists, in order to raise awareness and funds for organisations helping residents affected by the blast.
The 4 August blast saw at least 190 people killed and over 6,000 injured when some 3,000 tonnes of improperly stored ammonium nitrate exploded in the port.
The blast was one of the biggest non-nuclear explosions ever recorded, razing Beirut's port area and wreaking billions of dollars worth of damage across the capital.
Last month, Canadian musician The Weeknd joined thousands of others who donated towards aid for Beirut in the wake of twin explosions that destroyed half of the capital city back in August.
The singer made a sizeable donation, $300,000 to Global Aid for Lebanon to help the victims of the two blasts.
The singer's manager, Wassim Slaiby announced the donation on social media and thanked Live Nation for an additional donation of $50,000.
Slaiby and his wife Rima Fakih, both from Lebanon, donated $250,000 to the fund.
"I am so honored and humbled to work with artist’s who have such deep care for the world and right now for our brothers & sisters of Lebanon who are in pain and need our collective help," Slaiby wrote on Instagram, under a picture he uploaded with The Weeknd.
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