The 24-year old English-born Welsh winger came through the Royals youth academy and has now extended his stay at the Madejski Stadium ahead of the 2013/14 Championship season.
"I'm delighted to sign a new contract and it's a fantastic feeling to commit my future to Reading," he told the club's official website.
"Towards the end of last season there were a lot of positives to take - the new manager [Nigel Adkins] coming in, the style of football we began to play, and this is obviously a club looking to get back into the Premier League and stay there.
"The manager has shown a lot of faith in me and the style of football he is getting the boys to play is going to be exciting but effective as well. The only direction the club is looking to go is upwards and I can't wait for the season to start now."