The 23-year-old has signed a four-year deal at the Madejski Stadium.
Reading FC (@ReadingFC) August 20, 2016
He is Royals manager Jaap Stam's tenth summer signing, and Stam has expressed his delight at having finally gotten his man.
Referee Anthony Taylor shows Leicester City's Liam Moore a yellow card
Speaking to Reading's official website, Stam said: “Liam is the type of defender who can play high up the pitch, because he has pace and he can cover distances quickly should the opposition play long balls over the top or try to get in behind the back line.
“He is comfortable on the ball and can play it out from the back, he is an aggressive defender and good in one-on-one situations.
"I’m really pleased he has joined our squad at Reading.”
Leicester youth graduate Moore made his debut for the club in 2012 and went on to make 67 appearances in all competitions, scoring one goal.
Leicester Cty's Jamie Vardy (L) and Liam Moore before the start
Moore spent the majority of last season away from the club on loan, and made 10 appearances during a stint at Bristol City.
Having not been assigned a squad number for the 2016-17 season, Moore found himself surplus to requirements at the King Power Stadium and was allowed to move on.
His arrivial at Reading ends the club's ongoing pursuit for the defender, where the club had two previous bids for the England youth international rejected by Leicester.
Reading's manager Jaap Stam