NEW contracts could be on the horizon for Reading FC's Yann Kermorgant and Danny Williams, boss Jaap Stam has revealed.

First-team players Ali Al-Habsi, Garath McCleary and rising star Liam Kelly have already put pen to paper on new deals at the club, but Williams and Kermorgant's respective contracts both expire in the summer.

The Chronicle recently reported director of football Brian Tevreden was in discussions with players over new deals, and Stam revealed he now hopes to tie down Williams and Kermorgant on fresh contracts.

"From what I have been told Brian is going to go into talks with Danny over his contract soon," said Stam.

"I think everyone we have within the club who is out of contract is going to have talks with the board or the technical director.

"Yann is already in talks with Brian."

Reading FC also bought in Jordon Mutch, Lewis Grabban and Reece Oxford on loan from Premier League clubs Crystal Palace, AFC Bournemouth and West Ham respectively in the January transfer window.

Yet Stam suggested some players could stay beyond the end of the current season.

"Certain new players we have an option on but certain players we don't," Stam continued.

"We knew we needed to have a bigger squad to be competitive towards the end of the season.

"We already had the players on the list who we wanted to bring in. We had the names but we needed to rely on the owners to get some money to bring them in.

"They are doing well, they enjoy the way we play. We are always working on our system and looking for players who can adapt to that."

Royals also welcomed Tiago Ilori from Liverpool FC last month in what was thought to be a club-record £3m transfer fee, after the club were boosted by a £10.4m loan from a Chinese consortium trying to buy the club.

When asked about the ongoing takeover saga, Stam added: "I don't know who paid for these players.

"I don't know if the takeover is done, it could take several months.

"I have to wait the same as everyone else.

"They are still in talks. I don't know when or if it's going to happen."

Stam's success both on and off the pitch has seen the Royals rise to third in the Championship, nine points clear of seventh-placed Norwich.

Royals' boss is also the hot favourite to win the Sky Bet Manager of the Month for January having been shortlisted alongside Cardiff's Neil Warnock, Norwich's Alex Neil and Wolves' Paul Lambert.

But Stam insisted there is plenty of work to do to secure promotion to the Premier League.

"Everyone is dreaming of getting somewhere eventually," he continued.

"If we can't get to the Premier League within one season then hopefully we will get there within three.

"That was the target when I first came to the club, that was the plan.

"This is our first season, we are doing well. If the opportunity to go up is there we will try and grab that chance."

Reading entertain Barnsley at Madejski Stadium this Saturday (3pm).