The winger, whose current deal was due to expire at the end of the forthcoming campaign, had been linked with a move away following the club's relegation from the Premier League.
But he has opted to extend his stay until the summer of 2016 and says he is determined to help Nigel Adkins' side back to the top flight at the first attempt.
"I'm delighted to sign a new contract and it's a fantastic feeling to commit my future to Reading Football Club," Robson-Kanu told the club's official website.
"Towards the end of last season there were a lot of positives to take - the new manager coming in, the style of football we began to play, and this is obviously a club looking to get back into the Premier League and stay there.
"The manager has shown a lot of faith in me and the style of football he is getting the boys to play is going to be exciting but effective as well. The only direction the club is looking to go is upwards and I can't wait for the season to start now."
Reading's director of football, Nick Hammond, said: "I'm very pleased to have secured Hal's signing. He is a player who is improving year on year - to the extent that he scored seven goals in the toughest league in the world last season and also became a mainstay of Welsh national squad.
"He can play on both the right or the left and, going forward, we also believe he can develop into a very effective central striker. The challenge is now there for him to become a regular starter in this team and a big player for us in the Championship this season."