The Malta international has hit 11 goals in 17 games for the Sky Blues this season - including a double against Manchester United at Old Trafford in the Carling Cup - and reports over the weekend suggested Coppell was interested in signing the 26-year-old as a potential replacement for Leroy Lita.
Royals coach Wally Downes was in Greece to watch their 5-0 thrashing of Malta on Saturday but Coppell told the Reading Post: "He (Downes) wasn't there for a short break!
"We were looking at somebody - but it wasn't Michael Mifsud. We were aware of him in the summer when he was a free agent, so why would I pay £5m for him now?
"But we never comment on potential transfer targets."