Brighton boss Gus Poyet has rejected the job at Reading.
The Daily Mail says the Uruguayan yesterday turned down the opportunity of taking charge of the Berkshire club, despite the prospect of a huge transfer budget next season.
There were also significant doubts emerging over Nigel Adkins' desire to take the vacancy as the club's second choice, leaving Reading with a headache.
Poyet was known to have reservations about leaving Brighton, where he has been the manager since November 2009, for a place at the Premier League strugglers and has opted to stay put.