Monaco striker Radamel Falcao is speaking to Chelsea about a possible transfer, Sky sources understand.
West Ham have signed goalkeeper Darren Randolph following his exit from Birmingham City.
The 31-year-old Northern Ireland international joined the Royals in September on a short-term deal which expired last month.
Baird has been sidelined since November with an ankle injury but is still training with the club and director of football Nicky Hammond expects him to stay at the Madejski Stadium.
"He is still training with us but he is recovering from an injury at the moment," Hammond said.
"We will have a look at it once he is up to speed. He is keen to stay but he is not quite fit just yet."