Skysports.com understands Reading have turned down a second offer from Wolves for defender Matt Mills.
The former Doncaster Rovers centre-half has emerged as a prime target for Wolves as Mick McCarthy looks to boost his squad for next season.
An initial offer was rejected earlier this month and the Royals have now snubbed a fresh approach from the Premier League club for Mills.
It is understood that Wolves have so far offered in the region of £3million for Mills, while Reading are looking for a figure nearer the £4million mark.
Wolves chairman Jez Moxey revealed earlier this week that it may be time for the club to move on to other targets after also struggling to agree a deal for Birmingham City defender Roger Johnson.
With Reading determined to hang on to Mills, it is understood the Championship club will now try to persuade the 24-year-old to sign a new contract at the Madejski Stadium.