The new deal will keep the 26-year-old goalkeeper at Reading until the summer of 2013.
“We’ve been talking about it for a while and I’m glad to get it out of the way so I can concentrate on the rest of the season,” he told BBC.
“Reading are a fantastic club and I enjoy working with them everyday, it’s the major reason why I signed.”
“I’ve worked very hard to get into this position, playing is everything to me,” Federici added.
“I’m a much better goalie than I was a few years ago and I’ve got a good 15 years left in me yet, so I hope to keep on improving.”
