The Bermudan international, who last year received an MBE for services to young people and football, had been targeted by the Tractor Boys who are vying for a place in the Premiership.
However, the out-of-favour forward has no interest in joining another club on loan according to Ipswich manager Joe Royle, who has previously linked up with Goater at Manchester City.
"I spoke to Steve Coppell this morning and Shaun is reluctant to go on loan anywhere at the moment, so that won't happen," said Royle.
"I've made three enquiries, two serious ones, so there's still another opportunity. If Shaun changes his mind then, we'll see, but at this moment Shaun has told Steve that he doesn't want to go on loan anywhere."
Royals fans have mixed opinions about Goater's future at the club. According to some factions of the Reading faithful, the 33-year-old is a clinical finisher who can still prove himself not to be past it, whilst others believe Steve Coppell should cut the clubs losses on the half-a-million pound flop.
In reality the truth is somewhere in-between. Reading MAD reckon Coppell will sell the Goat if he can get good money for him which can be re-invested elsewhere. But that money won't be coming from financially troubled Ipswich.
Meanwhile, there are just nine days now until Reading's next match which will be at home to Derby on January 31st. Nicky Forster will likely be partnered by fellow finisher Shaun Goater in that one.