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Reports in The Sun at the weekend had suggested that ex-Gunners man Martin Keown was on his way to the Madejski Stadium.
But a Reading MAD source has revealed that there is "no chance" of the Royals snapping up Keown, who was released by Premiership champions Arsenal at the end of last season.
Club chairman John Madejski is apparently not prepared to pay Keown's estimated £10,000 per week wages.
It had been thought that Portsmouth, who last week signed David Unsworth from Everton, have ended their interest in signing 37-year-old Keown, leaving the way clear for the Royals to snap up the veteran.
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Sky Sports were reporting that Keown will link up with veteran forward Teddy Sheringham at Upton Park next season.
Meanwhile, DC United's Bobby Convey could soon be pulling on a Reading shirt. The American international, who can play at either left-back or on the left-wing, is said to be set for a year long loan spell at the Madejski Stadium.
Convey is expected to sign for Spurs in a £1m deal within the next few days, and it is believed that the North London will immediately farm the 21-year-old out to Reading so that he can experience English football before being thrust into Tottenham's first team.
However, current transfer regulations could prevent the loan switch to Reading from taking place.
Despite the intense speculation, Royals boss Steve Coppell is refusing to identify any of his transfer targets, but confirmed that he is still in the market for new players.
"I don't think we should be connected with players until we've actually had the permission of clubs and done things," he said, speaking to the official site.
"I'm not prepared to discuss any individual until I know the deal has been done.
"At the start of the summer we had our list of players we wanted, and we've still very much got our eyes on the people we were after at that time."