"I am delighted to have signed this new deal," Doyle told the club's official website.
"I've had ongoing discussions with [chief executive] Nick Hammond and over the last couple of weeks we have come to an agreement that is right for both me and the club.
"I have had great support from the chairman and everyone at the club since I arrived from Ireland three and a half years ago, and I take enormous pride in playing for Reading Football Club.
"This sense of achievement, as with all the players and staff, was dented on relegation, and I hope that signing this new deal will take away speculation surrounding my own future and allow me to focus totally on achieving my own and the club's ambition of returning to the Premier League at the end of the season."