The fire department arrived to the playground in flames around 9 p.m. Monday night.
It took the Malvern community five years to raise $20,000 to create the play area.
"It's especially important, especially in a priority neighbourhood that we focus so much on opportunities for young people," Scarborough Rouge River trustee Shaun Chen said.
The company said it will contribute $20,000 in corporate donations and a $2,000 contribution from local store dealer Stephen Grand. New sports equipment, including soccer balls, hockey sticks and nets will also be given to the school.
"Unfortunately we've seen a few things like these happen. Last year there was an incident in Quebec, another one at High Park and we really think it's important kids have a safe place to play in their own community," said Landon French, vice-president of Sports Partnerships, Canadian Tire.