Brady, 38, was spotted wearing a large diamond ring, which sources say was an engagement ring, as the couple spent Christmas Day on the Hawaiian island of Maui.
It is not clear whether the "American Idol" judge proposed before or after their Christmas vacation, but Tyler's family are reportedly furious about the news as they do not like Brady, according to the gossip site.
Some of the rocker's relatives are allegedly upset that the 63-year-old singer did not tell them he planned to pop the question until after the proposal.
Several members of the Tyler family have apparently clashed with Brady in the past, with one source telling TMZ, "She's just been mean to the family."
Tyler, who has been married twice before, has yet to comment.