The 25-year-old, who played under Nigel Adkins at Scunthorpe, has been recalled from his loan at Nottingham Forest to iron out his future.
Forest manager Billy Davies said Hobbs, who sustained a hamstring injury after an hour against Bolton today, wants to remain at the City Ground.
But Forest must now match Reading's bid, which was confirmed by Hull manager Steve Bruce after their defeat to Chelsea.
Asked about the potential signing of Hobbs after the 1-0 win over Watford, Royals manager Adkins said: "I had Jack at Scunthorpe. He's an experienced defender who has captained teams in the Championship."
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