In his time in charge, the 42-year-old coach has guided the Football Ferns to their highest ever world ranking at No.16.
The Ferns have defeated some world class opposition under Readings, most notably Brazil in 2013 and 2015, both away from home.
They also reached the quarterfinals of the 2012 London Olympics after defeating Cameroon 3-1.
New Zealand Football chief executive Andy Martin said Readings had played a significant role in developing a team capable of beating the best in the world.
"The challenge for the next coach will be to continue that development. We want to see the team build for the 2019 World Cup in France and the 2020 Tokyo Olympics and be in a position where they can win on the world stage."
- AAP