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The East London side had identified Pards as their preferred candidate to succeed Glenn Roeder at Upton Park but have had a move for the popular boss blocked by club chairman John Madejski.
The Hammers are therefore unable to begin discussions with Alan Pardew, so he should now be staying with the Royals, almost certainly bringing to an end days of rumours.
"I was approached this morning by West Ham United, asking for permission to speak to our manager about their vacant managerial position, and I said no," revealed Madejski speaking to the official site.
Unless the Hammers, currently led by Trevor Brooking, were to iniate further discussions with Reading the deal is dead in the water and life can go on as usual at the Madejski Stadium.
The news will come as a massive blow for the Hammers who must now turn their attentions to their other targets. Other preferred alternatives for the role are alleged to be Brighton's Steve Coppell, George Graham, Stuart Pearce and Nottingham Forest's Paul hart.
West Ham's failure to reach an agreement with the Royals is a major boost for Reading fans who had feared that their celebrated boss could jump ship. In an attempt to keep their man happy the club could now offer Pardew an improved contract or further cash to invest in the transfer market.
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Alan Pardew has reversed the fortunes of a mediocre Reading side during his five years in charge at the club. When he took control five years, 7,000 strong crowds were watching the team as they looked set to slip unnoticed into the Third Division.
However, after a complex rebuilding programme which has seen the club transformed from the bottom up, crowds are beginning to boom above the 16,000 mark as the team push for automatic promotion to the Premiership.
OTHER PARDEW TO WEST HAM ARTICLES:
>MADEJSKI BLASTS PERSISTENT HAMMERS RUMOURS
>'I HAVEN'T YET, BUT WILL I? NO ANSWER. THANKS FOR CLEARTING IT UP PARDS.
>WE'RE ON A SLIPPERY SLOPE...
>GRAHAM FOR WEST HAM?
>SALAKO GOING NOWHERE
>SHOULD I STAY OR SHOULD I GO?