The forward has extended his stay at the Madejski Stadium until 2015, while manager Brian McDermott has praised the 25-year-old's progression since arriving at the club
The 25-year-old, who was signed from Rotheram United in August 2011, has made six appearances in the Premier League this season and netted the equaliser from the penalty spot in Reading's 1-1 draw with Stoke City in August.
“From a personal level this deal is great for me. I have always had the self-belief that I can play at the highest level and I really appreciate that Reading feel the same,” Le Fondre told Reading's official website.
“I think it shows just how far I have come since signing with Reading from Rotherham, the club are now trying to establish themselves in the Premier League and stay up this season.”
Le Fondre scored 12 goals last season in Reading's Championship-winning campaign and Royals boss Brian McDermott has hailed the forward's progression since his arrival at the Madejski Stadium.
“Alfie has a great story; a year ago he was playing in League Two and now he's a striker in the Premier League,” McDermott said.
“He is a great lad, he works hard every day and he’s a natural finisher and we are delighted that he has made the decision to stay.”