READING FC could appoint Jaap Stam as their manager before the end of the week, according to reports today.

But sources at the club insist rumours of Stam's arrival in the national media are wide of the mark, and that the search is continuing for a new successor to Brian McDermott.

McDermott was axed at the end of last month after 161 days in charge during which Reading laboured to 17th place in the Championship, having finished 19th the year before under Steve Clarke.

Stam, 43, has been the outright favourite to take over the reins at Madejski Stadium ever since McDermott's departure.

Several national papers including the Daily Mail are now reporting the ex-Manchester United and Holland defender has agreed a two-year contract with the Royals.

They suggest he will be officially unveiled before the end of the week, though the Chronicle understands Reading are not planning to make an announcement any time soon.

Stam, who took part in Soccer Aid at Old Trafford on Sunday, recently left his role with Jong Ajax, the club's reserves team playing in the Eerste Divisie.

It was there he became good friends with Royals' director of football, Brian Tevreden, who is leading the search for a new manager along with Pairoj Piempongsant.

Meanwhile, unconfirmed reports also say Reading have held talks with ex-Atletico Madrid winger, Milinko Pantic, with Gianfranco Zola, Avram Grant, Phil Parkinson and Gary Rowett other potential targets.

Selected odds (Betfair): Jaap Stam 1/3, Gianfranco Zola 3/1, Avram Grant 6/1, Milinko Pantic 16/1, Phil Parkinson 16/1, Alex McLeish 16/1, Dennis Bergkamp 20/1, Gary Rowett 20/1, Neil Lennon 20/1.