McDermott worked under Alan Pardew, Steve Coppell and Brendan Rodgers
Reading have named caretaker boss Brian McDermott as their full-time manager on a 12-month rolling contract.
The former chief scout replaced Brendan Rodgers on 16 December and has inspired FA Cup wins over Liverpool and Burnley, but no league victories in five games.
Chairman John Madejski said: "I have always had great faith in Brian. His period in charge simply reaffirmed what I already knew.
"It was important to give him an opportunity and he has taken it."
He continued: "He has managed the team very well during a difficult period and this decision is based on the entirety of his work, both as first team manager and in his previous roles during his 10 years here.
I am delighted to have been appointed manager of a club that is very dear to my heart, and I would like to thank the chairman
"He enjoyed great success during his time as both chief scout and reserve team manager, winning silverware and gaining a knowledge of our squad that remains unsurpassed.
"The team are well-organised under Brian and he is passing on a wealth of experience to our players. He clearly has the full backing of the squad and the majority of the performances have been good, while he has been unfortunate to have been handed four of his five league games away from home."
Reading slipped to 23rd in the Championship table after losing 3-0 at Sheffield United on Tuesday.
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