Players will officially qualify based on their post-Wimbledon rankings, and the teams will be finalised following the U.S. Open in September.
Roger Federer and Rafael Nadal are already confirmed to play for Team Europe, with Tomas Berdych committing to play if qualified or selected.
"I can't wait to be part of the first ever Laver Cup. It's a tremendous opportunity and I'm really looking forward to being part of this unique team competition," Raonic said in a statement on Monday.
"Taking on the Europeans is no easy task. They've already got Roger and Rafa on board and we've all seen how well they've started 2017."
Team World is being captained by John McEnroe, while Bjorn Borg will captain Europe during the tournament, which will comprise two singles and a doubles match each day.
"Milos is incredibly impressive, both as a player and a person, and I'm very pleased he's committed to playing the Laver Cup in September," McEnroe said in the same statement.
"We know Team Europe is incredibly strong on paper, and that Roger and Rafa have both had an unbelievable start to the year," he said.
"But we are putting together a bunch of players who I have no doubt will be the next generation of Grand Slam winners, and Milos is definitely up there as a contender."
(Reporting by Simon Jennings in Bengaluru; Editing by Hugh Lawson)
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