Sky Sports News understands Roberto Di Matteo is 'unlikely' to be appointed Reading manager.
The Royals parted company with manager Brian McDermott late on Monday, sacking him after four years at the helm.
A host of names were quickly linked with the job, including former Chelsea and West Brom boss Di Matteo.
Di Matteo is currently out of work after leaving Chelsea in November - just six months after guiding them to the UEFA Champions League.
However, Sky Sports sources understand that Di Matteo is 'unlikely' to succeed McDermott.
Di Matteo's compatriot and former Swindon Town chief Paolo Di Canio has emerged as the favourite.
Who will be the next Reading manager?
Roberto Di Matteo
Paolo Di Canio