In a letter to clergy and parishioners across the Berkshire episcopal area, Rt Rev Andrew Proud wrote that he feels a deep sense of gratitude: "It has been such a joy to ordain deacons and priests and see them grow and move on, and to have had the privilege of baptising and confirming so many.
The Bishop of Oxford said Bishop Andrew has been a great "gift to the Diocese of Oxford".
Rt Rev Steven Croft said: "He has set humility, prayer, listening to scripture and the mission of God at the heart of his episcopal ministry.
"He has brought to the diocese a passion for the global Church, which has been threaded through every aspect of his leadership, and he has been a pastor and an encourager to many across the Berkshire area."
Bishop Andrew's last official engagement will take place on Easter Sunday next year.
Prior to becoming Bishop of Reading in 2011, Bishop Andrew served as chaplain of St Matthew's, Addis Ababa and was consecrated Bishop of Ethiopia and the Horn of Africa in 2007.
The Diocese of Oxford said since returning to the UK, Bishop Andrew has been instrumental in introducing a major mission initiative to the diocese.
Details of Bishop Andrew's successor will be announced by the Diocese of Oxford later this year.
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