The Royals official met with the left-back's representatives again on Monday as the club look to ward off reported interest from West Ham and Tottenham in the man who started England's showpiece friendly against Brazil at Wembley.
Shorey has two years remaining on his present deal, but Hammond has admitted his consistently impressive performances during the season have convinced the club to offer him improved terms - with talks currently ongoing.
"I spoke to Nick ant the end of the season with regards his contract," Hammond told the club's official website.
"We spoke about extending his deal, given his level of consistency and his performances throughout the season.
"This was prior to his England B call-up and then the senior squad. I was at the game on Friday with his Dad and it was a fantastic evening for the boy and for the club.
"I spoke to his representative today, and we're keen to have the next conversation."
Reading are working hard to tie their players to new deals, with Aaron Brown, Simon Cox and Ulises de la Cruz all offered longer stays at The Madejski Stadium.
The club have opted to take up the option on Brown's deal for a further season - despite his injury troubles - and Hammond hopes to have positive news regarding Cox and de la Cruz in the coming weeks.
"Aaron has worked tremendously hard to overcome a really bad break," Hammond added.
"We had an option on his deal from Tamworth and we're taking that to give him the opportunity to show what he can do.
"Myself and Brian McDermott are off to Spain this week to see De La play for Ecuador, and I'll speak to him then."
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