Manchester United have been handed a transfer boost after Nicolas Otamendi's agent revealed he wants out of Valencia.
Yaya Toure's agent has performed a U-turn and insists his client will remain at Manchester City this summer.
The 27-year-old is reunited with Royals boss Nigel Adkins, who managed him at St Mary's and also at Scunthorpe.
Sharp has scored 140 career goals but has not made an appearance for Southampton since August 2012, his last action coming in a loan spell with Nottingham Forest last season.
Nevertheless he will go straight into the Reading squad for Saturday's visit of Birmingham.