It now looks increasingly likely that Brian McDermott will leave his role as chief scout at Arsenal to return to the Madejski Stadium.
The 54-year old spent three seasons as Reading manager and successfully guided the Royals to the 2012 Championship title. He left the club in March 2013 when they were four points adrift of safety in the Premier League drop zone.
Following his departure from Reading, McDermott spent just over a year in charge of Leeds and then joined the scouting network at Arsenal in October 2014.
Reading sacked former manager Steve Clarke last week after he only won one of his last eight games at the club. Clarke had also caused controversy by meeting with Fulham over the vacant managerial position at the West London club.
Reading are currently in 11th place in the Championship and face Preston at Deepdale on Saturday.