The former Liverpool, Manchester United and Inter Milan player led the Royals to four wins and three draws in his first 11 games as Reading avoided relegation from the second tier.

Alex Rae, who has been assisting Ince, has also joined permanently.

Reading, who were deducted six points this season for breaching the EFL's financial rules, were five points above the relegation zone when Ince took over.

They ended one place and four points above the relegation places, although their survival was assured with two games left to play.

"Paul and Alex were brought into Bearwood to instil confidence, structure, spirit and determination into a first-team squad which in difficult circumstances had lost its way early in the year. And ultimately, he had to produce almost immediate results," chief executive Dayong Pang told the club website.

"Fourteen points from their first 10 games proved enough to keep the club in the Championship and I am delighted that Paul and Alex have accepted the challenge to take this club forward."