The Irish full-back, who joined the Royals from Carlisle in 2010, is to extend his stay at the Madejski Stadium as Brian McDermott's men seek to consolidate top-flight status
The Irish full-back, whose current deal was set to expire this summer was named in the PFA Championship Team of the Year after an impressive campaign in which he played 34 times, contributing four goals.
The 34-year-old, who joined Reading from Carlisle in 2010, revealed his delight at returning to the top flight for the first time since he left Sunderland in 2008.
"It's a dream come true to go back to the Premier League," he told the club's official website.
| HARTE'S 2011-12 STATS
"I'm absolutely delighted. Now that's all sorted I can go away and enjoy the summer, thoroughly looking forward to next season and come back raring to go."
Manager Brian McDermott was thrilled to keep the left-back at the Madejski Stadium ahead of a testing Premier League comeback.
He stated: "It's a fantastic story if you consider that, two years ago, Ian had been written off in certain quarters, and yet now now he is in the Premier League again.
"That tells you everything you need to know about the person, the player, his resilience, his character, his determination and his quality.
"He still has that burning desire in training every day to play at the highest level. So I'm delighted that Ian has signed a new contract."