The 20-year-old is currently on loan at Brighton and has been earning a string of rave reviews after some assured performances in the Seagull's colours.
Alan Pardew admitted that he would love to sign the youngster in an attempt to bolster his midfield but does not have the funds available to do so.
When questionned about the rumours linking Sidwell with a move to the Madejski, Pardew responded: "I like him but I don't have the money to spend."
Sidwell has played just eleven times for Steve Coppell's side but has already netted an impressive five times. It is the second time that the Arsenal trainee has linked up with Coppell, he spent last season on loan at Brentford whilst Coppell was in charge and helped the Bees to achieve third in the league.
Meanwhile, Reading's game with Norwich at Carrow Road on Wednesday 5th March will be screened live on Sky Sports. The 7.45pm kick-off will be unaffected by the presence of the Sky cameras.
It will be the third Royals game to be screened live this season following the home game with Sheffield Wednesday in August and next months clash with Gillingham.