The software will see a June beta release but te company also said the final product might not be free, unlike Google's ubiquitous RSS software.
Following Google's announcement that it would be killing off Reader as of July 1, Digg said that it would take it upon itself to fill the gap with its own RSS service.
The company conducted multiple surveys on discovery and reading features, as well as "more ancillary features like read later and sharing."
The survey responses, available here, showed that 75% of the 8600 respondents share news via email, compared to 55% who share stories via Facebook or Twitter.
"It almost goes without saying that our reader will include seamless sharing to all these services," Digg said in a post on its official blog.
The blog post also laid out plans to include support for Pocket, Instapaper, Evernote, and Readability.
Digg fans can sign up online here to participate in surveys and receive updates about the new product.
In July 2008, the company took part in advanced acquisition talks with Google for a reported $200 million price tag, but the deal ultimately fell through.
Four years later, on July 12, 2012, Digg was sold in three parts: the Digg brand, website and technology were sold to Betaworks for an estimated $500,000; 15 staff were transferred to the Washington Post's SocialCode for a reported $12 million; and a suite of patents were sold to LinkedIn for about $4 million.