After several months of discussions, starting at the end of 2012, the Royals sent their Chief Executive Nigel Howe and Director Chris Samuelson to Istanbul to finalise the deal this week.
The agreement means the Royals and the Super Lig leaders will share their respective knowledge of a wide range of areas, from training to youth player development to scouting, particularly in Africa.
"We are delighted to have signed this agreement and both clubs see this as a great opportunity," Howe told the club's official site.
"Working together with a club the size of Galatasaray can bring great positives to us at Reading.
"This is the first time we have entered into such an agreement and to do it with a club the size of Galatasaray is a real coup and we look forward to now bringing it to fruition."
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Additionally, Royals Director Samuelson emphasised the global appeal of Gala and expressed his excitement at the number of the potential opportunities it presents for both his club and the Turkish side.
"Galatasaray are a huge club, not just in Turkey but across the world," he told the club's official site.
"For example the Turkish community in London is substantial, and of course we have our own links to Turkey already with Jem Karacan doing so well for us from our Academy.
"There are many aspects to this, the exchange of information at youth and first team levels, the possibility of friendly games, the list goes on. We are in the early stages right now but these are exciting times for both clubs."