Brian McDermott confirmed on Tuesday that Reading had made an offer for Ince, who is high on Liverpool's wanted list.
The 20-year-old's performances for the Seasiders 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 entered the race for his signature.
It is believed that the Royals offered a fee in the region of £7million 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.
But it appears their interest in Ince is now over.
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