The 34-year-old defender has scored four goals in 33 appearances and chipped in with 10 assists.
It is the third year in a row he has won such an accolade having been named in last season's Championship Team of the Year with Reading and the League One Team of the Year with Carlisle United the season before that.
Harte was also named in the 2000 Premier League team when he was playing for Leeds United in the top-flight.
Royals can count themselves unfortunate not to have more players named in the latest Championship team.
Chief title rivals Southampton have three players in the side with goalkeeper Kelvin Davis, midfielder Adam Lallana and striker Rickie Lambert all winning a place.
West Ham have two representatives in James Tomkins and Mark Noble, while the remainder come from a variety of clubs including Blackpool's Matt Phillips who is believed to be a transfer target of the Royals.
Championship Team of the Year: Kelvin Davis (Southampton), Nathaniel Clyne (Crystal Palace), James Tomkins (West Ham), Curtis Davies (Birmingham), Ian Harte (Reading), Adam Lallana (Southampton), Peter Whittingham (Cardiff), Mark Noble (West Ham), Matt Phillips (Blackpool), Rickie Lambert (Southampton), Jay Rodriguez (Burnley).