Portsmouth have agreed an undisclosed fee with Reading for 23-year-old goalkeeper Jamie Ashdown.
Ashdown had a successful loan spell at Rushden & Diamonds this year
The matter was due to be decided at a tribunal on Thursday but Pompey will now pay an initial sum with more to come depending on appearances.
Ashdown a product of Reading's youth system, played 16 times for the club.
He agreed a move to Portsmouth in June after his contract ran out but the Royals were still entitled to a fee because of Fifa regulations.
Reading director of football Nicky Hammond said: "I'm happy with the fee we have agreed and feel that it protects the integrity of the academy."