However, chairman John Madejski confirmed that negotiations have started with the popular boss who has helped Reading make a great start in Division One.
In recent weeks Pardew has been linked with vacant managerial jobs elsewhere making concerned fans anxious about their bosses future at the club.
The club have until now seemed reluctant to sit down and discuss new contract with players and management but after some good recent results which have seen the Royals rise to the lofty heights of eighth the club appear to have had a change of heart.
Speaking to readingfc.co.uk Madejski said: "I think he's a great manager, and we want to keep the management team together so of course we're talking about his contract.
"These thigns are never easy, but hopefully something will emerge in the not too distant future."
Reports suggest that Alan Pardew will sign a new three year contract to stay with the Royals in the not too distant future.
Despite the good news about Pardew, the club are still to start discussions with Jamie Cureton, despite revelations on Reading MAD that he could be on his way at the end of the season as a number of clubs are interested in him.
Meanwhile, Reading's clash with Portsmouth on December 7th has been moved back to 12pm on police advice.