AC Milan have held talks with Chelsea over the transfer of Fernando Torres, according to Sky sources.
Mehdi Benatia has completed his move to Bayern Munich by signing a five-year contract after a successful medical.
The Icelander has only made four appearances for the npower Championship champions this term and is out of contract in the summer, sparking speculation of a return to his homeland.
However, the 36-year-old midfielder has stressed he would like to stay in Berkshire to savour the Royals' return to the Barclays Premier League.
He told the Reading Post: "It would be fantastic to stay here, if that becomes a possibility then I would definitely consider that. If not, then I'll take a few weeks out and see where things go.
"You always want to play, whether it's in the Premier League or not. As this season progressed I enjoyed it in a different way. I wasn't playing much but was still involved indirectly and I enjoyed it.
"I finished my UEFA B on Thursday and passed that with no problems. It's something I'm still looking into, but at the same time I want to play for as long as I can. Being a player-coach, I don't think that would suit me. It's either or. There is uncertainty, but I'll take things as they come."