The 25-year-old goalkeeper, who opted to miss the 2011 Asian Cup to focus on club duties, admitted he was delighted with the new deal.

"I'm very happy here and this is great news," Federici told the club's official website.

"It's good to put this all to bed and I'm very happy at Reading. It's a club that has been very good to me and I don't think it would have been fair if I'd walked out on a free.

"Everyone at the club, the manager, staff and supporters have been great. I enjoy working with them every day and that is one of the major reasons why I decided to sign again."

Reading boss Brian McDermott added: "I'm delighted with the news, he is a top young goalkeeper and a top guy to have around the place as well.

"He has a real desire to play, he's doing that every single week and it is a real bonus for us that he has decided to commit himself to the club.

"He wanted to be here at Reading, and I know I keep referring to it but we are lucky to have a unique situation here, we have players who want to play for this club and for our fans."