On 12 March 2007, Federici signed a two-year contract with Reading to keep him at the club until the end of the 2008–09 season. On 17 February 2007 a "second string" Reading side unexpectedly drew 1–1 with Manchester United during an FA Cup 5th Round tie at Old Trafford, with the young Aussie keeper making some fine saves in a memorable game for the club. For this performance, he was named the FA Cup "Player of the Round" for the 5th Round. However, in the replay on 27 February, Federici had a night to generally forget as Reading conceded three goals in the first six minutes.