Talks are now due to be held regarding a new contract later this month, according to Reading's director of football Nick Hammond.
"I had a brief chat with Steve yesterday and we've agreed to sit down over a cup of tea in the next couple of weeks to talk about a new contract," Hammond told the club's official website.
"We don't have any concerns whatsoever.
"We're looking forward to sitting down and I am sure the process will be as smooth as it has been in previous years."