James Henry has signed a contract extension with Reading that will keep him at Madejski Stadium until summer 2011.
The 20-year old winger is currently on loan at Millwall but the Royals were happy to secure him for at least the next 18 months.
"James is an exciting player who is still very young," Reading director of football Nick Hammond told the club's official website.
"He is continuing his football education at Millwall and is a player we have high hopes for in the future."
Henry joined Reading in 2006 and has spent time on loan at Nottingham Forest, Bournemouth and Norwich City before his first stint at the New Den last season.