The highly-regarded Australian shot stopper has attracted interest from a host of Barclays Premier League sides following some particularly impressive performances for the Royals this season.
But he has revealed his desire to stay and play first-team football with Reading rather than moving to become a top-flight number two.
"I'm very confident that I will stay at Reading," Federici told the Reading Post.
"We've been talking and I'm hoping it's sorted soon. I'm looking forward to finishing this season strongly at this club and you never know where we might end up.
"The manager here wanted me to stay as well. I want to keep on playing so hopefully it works out for everyone."
Source: PA
Source: PA