The 24-year old right-back is a target for Manchester United while Chelsea have also been credited with an interest but Reed suggests contract talks are going well and expects all to end well for the Saints.
Striker Jay Rodriguez signed a new four-year deal this week and Reed suggests negotiations with four-time England international Clyne are heading the same way.
"With Clyney it's very much been the same as with Jay in that we've been talking for quite a while," Reed said.
"It gets fed by speculation which doesn't help.
"Ronald [Koeman] made a comment that there was a deadline but that deadline was more about getting a response, and that issue has been resolved.
"I'm in discussions with his agent and that has been very positive.
"Nathaniel has made statements that he's happy here.
"There's bound to be speculation because he's such a good player and has had such a good season.
"We have to balance that against what he can do for us in the future and what we can do for him.
"We're at a very good place at the moment in terms of the discussions going on and I'm confident that we will have a resolution to that sooner rather than later."