It will be the media company’s third location in the US as it also has plans to open in Miami next year and Boston in 2019.
Time Out Group has secured a five-term loan with a gross commitment of €9m to roll out the global markets which began in Lisbon in 2014.
The Chicago location is due for 2019 and is expected to have a footprint of approximately 50,000 square feet for around 600 seats. It will be spread across three floors with market space indoors and outdoors, an event venue, and a viewing platform.
Julio Bruno, chief executive of Time Out Group, said: "[Chicago] is a city that we know very well and where the Time Out brand is hugely popular; our website is getting millions of page views each month and our Time Out Chicago magazine has been loved and trusted since 2005.
"The strength of the Time Out brand in Chicago combined with the city’s fantastic food and cultural scene make this a great location for a new Time Out Market and as a past Chicagoan myself I am very excited to see it happen.
"We now have a roster of Time Out Market openings in some of the most exciting cities around the world and we are looking forward to them continuing the success story we started with Time Out Market Lisbon."