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The highly-rated 23-year-old today penned a new deal, keeping him at the Madejski Stadium until the summer of 2007.
Shorey, signed from Leyton Orient for £25,000 in 2001, had been in negotiations over a new deal for some time, but a serious inury that had him sidelined for five months led to a temporary halt in discussions.
But club chairman John Madejski was today pleased to announce that Shorey, one of the club's biggest assets, will be staying with the Royals for a further three years.
"It's a great signing," commented the chairman.
"Nicky has been a stalwart for Reading Football Club and he is a great talent. He's an integral part of the team and he will help us in our pursuit of excellence.
"I'm sure if he had not signed for another three years with us then there would have been plenty of other clubs interested."
Shorey joins fellow star performers Graeme Murty and Steve Sidwell in signing long-term deals at the club.
But the future of Nicky Forster remains in the balance. The 31-year-old's current deal expires at the end of the campaign, and the club are yet to offer him a contract extension.
There are growing fears that the electric frontman will leave the club on a free transfer. A whole host of rival Championship sides are sure to be chasing his signature.