The structure, built in front of a bench opposite Marks & Spencer in Broad Street, was built using dozens of boxes stacked on top of each other.
Its construction comes just weeks after the death of Kepha Otundo, a Kenyan man who was sleeping rough in a tent at an encampment on Abattoirs Road near the town centre.
He died aged 47 on January 10 after exposure to the extreme cold.
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Reading Borough Council confirmed Mr Otundo had been offered emergency accommodation multiple times, including a bed space as part of the council’s Severe Weather Emergency Protocol (SWEP) which was originally accepted but later declined.
He was also known to the team at St Mungos in Reading, a homelessness charity.
A spokesman confirmed the shelter was taken down yesterday morning (Thursday).
He said: “The St Mungo’s team regularly carry out welfare checks in the Broad Street area and offer support to those found bedding down.
“We adopt a multiagency approach drawing on support from health and adult social care partners to develop a comprehensive and tailored support offer.”
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He added: “Our commissioned outreach team, St Mungo’s, actively engage with people that find themselves sleeping on the streets to identify support needs and establish accommodation options but for a variety of reasons these offers are not always taken up.”
St Mungo’s press lead, David Lindley-Pilley, said situations like this have become “increasingly common” in Reading.
He said: “No one should be forced to sleep on the streets under the shelter of cardboard.
“We know that every day and night that someone spends without somewhere safe, stable, and warm to live limits not only their life chances but their life expectancy too.
 “St Mungo’s is out on the streets there day and night, delivering outreach support for people sleeping rough on behalf of the council. This also includes providing links to emergency accommodation and tailored support so that someone can leave homelessness behind.”
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Grace Gomez, chairperson at The Way Ministry, which supports vulnerable people experiencing poverty, said they are “increasingly concerned” about the number of people sleeping rough in the town centre.
She said: “Reading is fortunate to have many dedicated charities and organisations doing excellent work to support people experiencing homelessness.
“However, the one vital thing we still do not have a permanent night shelter.
“People need somewhere safe , warm and dignified to go at night .
“A permanent night shelter would meet a critical gap in our local provision.”
Ms Gomez is appealing to businesses and property owners who could help the homeless.
She added: “The Way Ministry is appealing to landlords, businesses, churches and property owners who may have an empty or unused building that could be offered to help establish a night shelter.
“One building could make an immediate and life-changing difference for those currently sleeping on our streets.”