The Royals were beaten play-off finalists in the 2016-17 season and their Dutch manager will hope to guide them to the Premier League this termJaap Stam has signed a new contract with Reading, tying him to the Championship club until 2019.
The Dutchman guided the Royals to the play-off final last season, where they were beaten on penalties by Huddersfield Town.
Stam was linked with West Ham in March to underline the former Manchester United defender's growing reputation as a coach, and chief executive Nigel Howe was delighted to secure his signature for another two years, along with retaining coaches Andries Ulderink and Said Bakkati.
"Jaap, Andries and Said signing new contracts is momentous for this football club and a clear demonstration that Reading football club is a great place to be right now," Howe told the club's official website.
"Akin to the manager, we are a club with fierce ambition and his commitment to the cause offers us the continuity we need to build on last season's undoubted successes, shape our future with stability, drive and focus and aspire to achieve even more in 2017-18."