57.9.5.3.1 Read Sequence
In the case of a read sequence (SVREAD is high), the TWI transfers data written in FLEX_TWI_THR (TWI Transmit Holding register) until a STOP condition or a REPEATED_START + an address different from SADR is detected. Note that at the end of the read sequence TXCOMP (Transmission Complete) flag is set and SVACC is reset.
As soon as data is written in FLEX_TWI_THR, the TXRDY (Transmit Holding Register Ready) flag is reset, and it is set when the internal shifter is empty and the sent data acknowledged or not. If the data is not acknowledged, the NACK flag is set.
Note that a STOP or a repeated START always follows a NACK.
See figure "Read Access Ordered by a Host" below.