The 20-year-old's performances for the Seasiders in the Championship have earned him a host of admirers, with the youngster scoring 15 goals in 27 league appearances.
He has been linked with a return to boyhood club Liverpool in this month's transfer window but Reading have entered the race for his signature.
Sky Sports reported earlier this week the Royals had made a bid for the winger and McDermott has now confirmed the offer.
He told Sky Sports News: "We've made a bid, we're waiting on Blackpool to come back to us on that one.
"He's a Blackpool player so it's difficult for me to talk about players that don't belong to us.
"He's got quality, he can play number 10 or out wide on either side, he loves his football and can score or create goals. He's got a real hunger.
"He's a good player with potential, I imagine there's a lot of interest in him. But once again I have to say this is a player who doesn't belong to us."
Lure
The manager hopes the lure of regular first-team football in the Premier League will be enough to tempt the England Under-21 international to join the club.
It is understood that the top-flight strugglers have offered a fee in the region of £7million-£8m for a player who scored twice in Blackpool's win at Wolves on Saturday.
Reading have already struck three times in the transfer market this month, bringing in Daniel Carrico, Hope Akpan and Stephen Kelly as they bid to avoid relegation.
McDermott also confirmed the club's interest in Sheffield United striker Nick Blackman, who rejected the chance to talk to Crystal Palace after they had a £1.25million bid accepted by the Blades.
He added: "We think he's a good player, but again he's a Sheffield United player."
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