Tyler Blackett has departed Manchester United to complete his move to Reading, the Championship club announced on Monday.
Blackett, 22, made 12 appearances in all competitions for United under Louis van Gaal in 2014-15 but did not appear last season and spent four months on loan at Celtic.
He signed a three-year deal with Championship side Reading, led by former United defender Stam is in his first managerial role.
- Reading FC (@ReadingFC) August 22, 2016
"As we know, Tyler is a talented defender who has played for United's first team," Stam said in a club statement. "He can play as a left-back or a left-sided centre-back; he has got great potential in the sense that he is quick and athletic, defensively he is strong and he is good at set-pieces.
"As a defender he can go and play high up the pitch as well, and that is what we need in the squad."
Blackett watched Reading draw with Brighton on Saturday from the stands, though when asked why he was there, Stam replied: "I think he likes watching good football."
Blackett has featured nine times for England at youth level, most recently for the under-21s in 2014.
The signing is Reading's third of the summer following the arrivals of John Swift and Liam Moore.