The 25-year-old has completed a Bosman move to the newly-promoted side after leaving Newcastle this summer, with the transfer set to be completed over the weekend
Guthrie's move will become official once the transfer window formally opens on July 1st, with the FA and the Premier League yet to ratify the various contractual documents of the deal.
He was also linked heavily with a switch to Aston Villa this summer but completed a medical on Friday and the new Royals signing admitted he cannot wait to get started.
He told Readingfc.co.uk: "It feels brilliant to have signed, it is a great honour and I am very excited.
"As soon as I met the manager and [Director of Football] Nick Hammond my mind was made up, it was a no-brainer. Reading is a fantastic family club and I'm so excited to be part of something special for this club."
Chairman John Madejski believes securing Guthrie's signature - as well as fellow new addition Pavel Pogrebnyak - signals the club's intent going into next season.
He said: "I would like to welcome Danny to Reading Football Club and wish him every success here. He is a highly-regarded player and it speaks volumes that he decided to join us here at Reading.
"He has rightly recognised that these are exciting times to be associated with our club and its potential."
Manager Brian McDermott was equally thrilled with his new signing, saying: "We're delighted Danny has signed for us. He's brings good experience at a good age, he has real ability to pass the ball, he's got energy, he's hungry and is what Reading is all about.
"We're looking to add players who we think will be good for us over a number of years, not just next season, adding to the players who have already done fantastically well for us."
Hammond admits that Guthrie has been on the club's radar for some time now and believes he will display his qualities at the Madejski Stadium.
He said: "Danny is a player we have admired for a long time and we have been aware of him since he first broke into the Premier League at Bolton.
"He has great experience at this level, most recently for a massive club in Newcastle playing in front of big crowds on a regular basis. He is a good age, but still has a lot more to come with the best years of his career ahead of him."