Last weekend it was reported that the club were hoping to host the Socceroos games but it later emerged there was less than 50% chance of the deal being completed.
Time has now run out for the Argentina game to take place on March 30th, so the game has had to be cancelled. However, a clash between Australia and Cameroon could still take place at the Madejski Stadium on April 30th.
Speaking to readingfc.co.uk Sales and Marketing Manager Boyd Butler revealed his disappointment.
"Unfortunately there is not enough time for Soccer Australia to find an underwriter for their game against Argentina. We hope that the Madejski Stadium can host some Australian games this season and we look forward to them coming here."
The Socceroos are looking for a European base as several of their top players who strut their stuff in Europe are reluctant to travel half way round the globe to pull on their international shirt.
Whilst the Madejski remains the favourite to host Aussie fixtures it is possible that the Australian FA could look at alternative venues if the problems persist. Watford and QPR are also believed to be interested in hosting the Socceroos fixtures.