Mr Reid, who won gold and silver medals at the Rio Olympics, as well as Australian Open and Wimbledon Grand Slam titles, grew up in Helensburgh.
The former Hermitage Academy pupil said he was looking forward to celebrating the "great honour" with the town.
Argyll and Bute Council provost Len Scoullar said Mr Reid was an "extremely deserving recipient" of the award.
He said: "The whole country is immensely proud of his achievements.
"The council is pleased that we are in a position to be able to recognise the wonderful national and international success in his chosen sport in this way."
Mr Reid said: "I know how much the local people support me when I am competing throughout the year, and I am proud to tell people I meet on my travels that this is the area I grew up in.
"I would like to say a huge thanks to everybody in Argyll and Bute, and especially Helensburgh, for all their continued support."
Mr Reid lost the use of his legs at the age of 13 after contracting Transverse Myelitis - a disease affecting the spinal cord.
He will be the second individual to receive the council's highest honour - former Provost Billy Petrie being the previous recipient.
The Argyll and Sutherland Highlanders have also been given the accolade.
World number one wheelchair tennis player Gordon Reid has been made an honorary freeman of Argyll and Bute.