According to the Daily Star Sunday, Coppell is considering a move for Pompey striker Nugent, who only joined the club from Preston in the summer, but has struggled to break into Harry Redknapp's first team.
Coppell is also thought to be keen on West Ham midfielders Hayden Mullins and Mark Noble, but admits he will have to pay over the odds to secure the players he wants.
He said: "It's a limited market for us because of the perception of Reading. But it's amazing how money talks.
"It can be very persuasive and we accept we will have to pay more than the going rate.
"We must strengthen our squad in January because we want to be a real player rather than a bit-part in this league."