The books are planned to be delivered to Arequipa's Cultural Center, which administers the house where Vargas Llosa was born and will convert it into a museum in 2013.
The author of "The Dream of Celt" said he decided to donate his library after "feeling very dedicated" to Arequipa for the love its people had shown him.
Vargas Llosa said his more than 30,000 books are spread between residences in Lima, Madrid and Paris.
Most of the books consist of literature and include his personal notes, he said.
The 2010 Nobel Prize in Literature winner arrived in Arequipa with his wife, children and grandchildren. He is participating in literary activities and tributes organized by local authorities.
Vargas Llosa announced this month that he is planning a new novel based in the Peruvian city of Piura that evokes changes in the country and includes autobiographical elements.
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