The 17-year-old's first professional contract will see him stay with the Royals until the summer of 2022.
Olise has spoken to the club's website on the new chapter in his career.
"It feels great to finally sign, I'm excited. It was a good challenge last season, and I want to keep pushing on for this season now - keep the hard work going and see what happens," Olise stated.
"It feels great that the manager has confidence in me, it helps a lot for my confidence too.
Olise is an U-18 youth international for France and thus has earned the trust of his club manager, José Gomes.
"Michael is a very young, talented footballer. Age doesn’t matter to me as a first team manager; when young players show me they have the talent, they will get opportunities to prove themselves at senior level - and Michael grabbed his chance with both hands.
'He (Olise) has earned this new contract and now I look forward to working with him on the training pitch."
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