Michael Fogg, who runs Michael Fogg Family Funeral Directors, paid for the body to be repatriated and has offered to conduct a funeral service for free.
Mr Fogg, who was a fan of the popular comedian, made the gesture after it emerged that Freddie’s family was struggling to find the cash and he may have been laid to rest in an unmarked grave in Spain.
Freddie, 74, was found dead in his Costa del Sol apartment on Thursday.
Mr Fogg described the Merseyside-born comic as a ‘legend’.
He was known by fans for his eccentric and often unpredictable behaviour.
In 1986, he was famously at the centre of one of the best known newspaper headlines when The Sun splashed with: "Freddie Starr ate my hamster."
During the 1990s, he starred in several TV shows including Freddie Starr, The Freddie Starr Show and An Audience with Freddie Starr.
He took part in the 2011 series of I'm a Celebrity ... Get Me Out Of Here but dropped out due to ill health.
Police investigated an allegation of historical sexual abuse against Starr in 2012, which he said left him ‘suicidal’.
He was told in 2014 that he would not be prosecuted after spending 18 months on bail.
He lost a damages claim against his accuser in the High Court in 2015 and in an interview he revealed he had been left facing a bill of around about £1 million.
In a Facebook post, yesterday, funeral director Mr Fogg said: “Seven days ago today we were in contact with Freddie Starr's family and told them it would be a privilege and a honour to repatriate and conduct the funeral for one of England's best loved comedians. “The first part of this promise is completed. We have repatriated Freddie Starr From Spain to Michael Fogg Family Funeral Directors in Sheffield. “We as a family would like to thank each and every one of you who have posted messages on our Facebook page. “The funeral details will be posted on our page at a later date.”