GOAL - James Westwood
The centre-back spent the second half of last season with the Championship side, making 18 appearances, and the Royals have opted to bring him back for a full year.
The United States international had previously been sent to Nantes and Vitesse, where he made 72 appearances and won the KNVB Beker, but has played just two competitive games for Chelsea's first-team.
“Even as a player at the early stage of his career, Matt showed last season that he has a mature head on young shoulders and plenty to offer the squad both on and off the pitch," Reading CEO Nigel Howe told the club's website.
"I am pleased that he has been keen to return to Reading and I look forward to seeing his contribution for the Royals in the coming season.”