Lita has fallen out with Royals boss Steve Coppell and is looking for a move.
He added: "I'm sure other clubs will look at the Leroy situation and think there is an opportunity there. But the manager has said all along he needs four forwards for healthy competition and there is hardly anyone we want to lose in the transfer window."
Lita has only appeared eight times for Reading this season. The striker moved from City back in July, 2005 for £1 million.