The former Millwall man, who was recently heavily linked with a move to league two team Leyton Orient, should sign his new deal on Thursday when Director of Football Nicky Hammond returns from holiday.
London side Orient, who have former Royal John Mackie on the books, reportedly offered veteran Newman a desirable two-year deal. Although Reading were unprepared to offer more than a twelve month contract, Newman should sign a new deal before the end of the week.
Last season the Guildford-born man was only used as a reserve, yet made thirty-five appearances for the Royals as the club's injuries stacked up. Indeed, with Steve Brown apparently on the verge of hanging up his boots having failed to recover from a knee injury, Reading desperately need defensive cover.
Newman's decision to re-sign will boost Steve Coppell who was earlier this month hit by the news that Crystal Palace defender Darren Powell will not be signing for Reading this summer.
Having signed for the Madejski Stadium side in the summer of 2000 on a free transfer from Millwall, Newman has made 118 appearances for the Royals during his four year stint at the club. However he would have played many more games had it not been for a cruciate ligament injury that kept him out of the 2001-02 promotion winning campaign.