The 20-year-old's loan spell does not end until January so he remains a Shrewsbury player and could be involved once again at Town.
Graham Turner told the club's official website: "I believe Michael has the potential to be a decent central defender and a decent player.
"Though he has made one or two mistakes that have proved to be costly for us.
"I had a chat with him about the situation and at present he's better off playing in Reading's reserve side rather than ours.
"He does catch the eye with his reading of the game, his coming out with the ball and his passing it but one or two of the more basic duties he's shown that little lack of experience."