Reading director of football Nick Hammond is confident that Stephen Hunt will stay with the club.
Steve Coppell revealed earlier this week that he had turned down a bid from Sunderland for the Irish midfielder.
The Black Cats are still understood to be interested and could come back with another offer, but Reading have no intention of letting Hunt go.
The 26-year-old only signed a new long-term contract last summer but Hammond has revealed that the club are ready to offer him an improved deal.
"It is part of an ongoing discussion," Hammond told the Reading Evening Post.
"We did his contract in the summer and I said to him `If you progress like you have done this season, we'll look at your contract again'.
"That discussion was some weeks ago and we're in the middle of it. I'm sure we'll find a satisfactory conclusion for both us and Hunty.
"He is our player and he's done exceptionally well with us."
Hammond maintains that Reading are under no pressure to sell, and he expects the squad to stay together through the transfer window
"No-one will be leaving Madejski Stadium unless it suits Reading that they do so," he said.
"We are in control of the situation and there will be no developments unless we decide it's the right move for our club.
"I fully expect all our players to stay."