Canaries chief Chris Hughton, who already has keepers John Ruddy, Mark Bunn, January signing Lee Camp and youngster Declan Rudd in his Carrow Road squad, has now snapped up the highly-rated young custodian from the Blue Square Premier League outfit.
The Hatters were loathe to lose Reading, who has been part of their academy since 2009, but youth operations chief Matt Stannard conceded that they could not stand in his way given that a Premier League club has come in for him.
"Whilst it is our ultimate aim to push players all the way through our development programme, we would never stand in the way of a player who is offered the opportunity to move onto a bigger club," he told the club's official website.
"We felt in this instance that this was the right move for Tyler and Luton Town Football Club."
Luton academy boss Wayne Turner added: "We had long discussions with all the staff and felt that this was the best decision for the club.
"We would like to wish Tyler every success at his new club as he seeks to pursue his career at a Premier League club."