Royals sign Jamaican star
The 22-year-old comes to the Madejski Stadium from Jamaican side Portmore United, having attracted the interest of The Royals for several months.
The highly-rated attacking midfield man appeared last month for The Reggae Boyz at the Concacaf Gold Cup and has been capped 21 times by the Caribbean nation.
Daley has attracted the interest of several other English clubs - including Charlton Athletic, Everton and Preston North End.
The Addicks were close to signing the midfielder a year ago following a trial at The Valley but the club were unable to land a work permit for Daley at the time.
The player was on trial at fellow First Division side Stoke City last month and despite appearing in some pre-season friendlies for The Potters, Daley has opted to join ambitious Reading.
"We feel we've signed two real cast-in-iron players in Scott (Murray) and Shaun (Goater), so we're taking a bit of a gamble on this one but it's an educated gamble," Royals boss Alan Pardew told the club's official website.
"We know a lot about him and he's a prospect.
"We obviously don't know what he's going to do in this division and in this country but he's got immense talent and a nice character."