Alex McCarthy has signed a new long-term contract at Reading and joined their Championship rivals Ipswich Town on a three-month loan deal.
The 22-year-old goalkeeper is held in high regard by the Royals and they have moved to secure his services until the summer of 2015.
They are, however, keen for his ongoing development to be aided by regular game time, something they are unable to offer him at present.
McCarthy has already taken in a successful stint at Leeds United this season, and he will now take in a similar spell at Portman Road.
Reading are delighted to have resolved any outstanding issues regarding his future, with both parties now in a position to look forward.
The Royals' director of football Nick Hammond told the club's official website: "I am delighted, Alex is a very highly-regarded young goalkeeper both at our club and in the wider football world, so this is a very important signing for us. It is great news that he has committed himself for another three-and-a-half years.
"He has shown enormous progression over the last 12 months, and his loan to Ipswich will allow him to gain more experience at Championship level.
"With Adam Federici in outstanding form and our two young goalkeepers committing themselves to the club in the last week, we have an outstanding group of goalkeepers, and huge credit should go to goalkeeping coach Sal Bibbo for his fantastic work with them over the last number of years."
After penning fresh terms, McCarthy added: "This is excellent for me, it's a nice, secure feeling to know that you have years behind you and I'm really looking forward to the future.
"I had a good spell in the team last season and this is a great club to be at, great lads, great staff, a great manager.
"Everyone always comments about the goalkeepers here because we've got such a great group. All of us want to be playing, of course, and being a goalkeeper that's not possible - that's why I've taken more time out to go on loan. But eventually I want to be playing my football here."