Ryan will launch the newspaper to be named "The Homerian" early next month, the Chicago Tribune reported.
The 16-page Homerian will be a weekly paper mailed to the 22,000-thousand village residents.
Ryan said he had a "fantastic reception" with the officials and town residents.
"We're honored that he picked our village," said Mayor Russ Petrizzo, who supported Ryan when he was running for Senate. He said Ryan has said the newspaper will not be partisan, the Tribune reported.
Ryan left the Senate race last June after records related to his divorce from actress Jeri Lynn Ryan were unsealed at the request of the Tribune and WLS-TV, the report said.
It was after he bowed out of the campaign that someone suggested the former investment banker start a paper, the report said.