NBA Commissioner Adam Silver made the announcement at a news conference in New York.
The decision comes after days of public outrage directed at Sterling after an audio recording surfaced over the weekend that allegedly contained his voice saying racist comments to his then-girlfriend Vanessa Stiviano.
The tape recorded a man's voice, which the NBA said is Sterling, telling Stiviano not to post pictures of herself with black men to Instagram or bring black men to Clippers games. One of the men mentioned is Hall of Famer Magic Johnson.
Sterling, 80, has owned the Clippers since 1981.