THE English Football League have refused to comment on speculation suggesting the Chinese takeover at Reading FC is on the verge of collapse.

The Daily Mail last night ran a website story stating billionaire property developer Dai Yongge and his sister Dai Xiu Li could fail in their efforts to become Royals' new owners.

The paper claims it believes the EFL are now more likely to turn down the proposal from the Chinese siblings and their fellow investors.

The pair have already seen one takeover attempt crash when a £130 bid for Hull City was rejected by the Premier League last summer before it had reached the owners and directors test stage.

It is said the main reason behind that deal falling through was due to a lack of transparency over the other members of the consortium who were set to provide around 50% of the funding.

It is thought Premier League chiefs passed on their reservations to EFL bosses who also have their own concerns.

Yongee and Xiu Li met with ELF representatives in Preston in mid-December, but little information has been forthcoming and Royals fans fear the takeover has collapsed.

An EFL spokesman said: “The EFL are unable to comment on this matter. This is a club issue now and only they can comment.”

Royals boss Jaap Stam has already voiced his frustrations at a lack of information over the takeover, claiming he has been left in the dark.

However, the club last week backed the Dutchman in the transfer market by signing Tiago Ilori from Liverpool for a club-record £3m, though Stam refused to say whether the money came from the current Thai owners or the Chinese consortium.

Royals director Pairoj Piempongsant is overseeing the proposed takeover, which would see the Thais give up 75% of their shares.

The Mail also states Barnsley chairman and former Manchester United director Maurice Watkins has been drafted in to push the takeover through.

However, the Chronicle understands there is no truth in that rumour.

Reading FC are yet to comment on the speculation.