READING FC are ready to offer Jaap Stam a new contract to end speculation over his future.

The Reading Chronicle understands Royals will try and tie down Stam on a new two-year deal when he returns from holiday.

The 44-year-old Dutchman has only one year left to run on his existing contract and was linked with Championship rivals Leeds United and Ajax this week.

But Royals' new Chinese owners are eager to reward Stam for a stellar first season in charge with an improved deal at Madejski Stadium.

Stam has become hot property after guiding Reading to third place in the Championship table last season – his first in management.

Royals also found a way past play-off favourites Fulham in the semi-final before an agonising penalty shoot-out defeat to Huddersfield Town in the final at Wembley last week.

As a result, Stam's name has been touted around as a possible successor to Garry Monk at Leeds and Peter Bosz at Ajax, the Dutch giants Stam left as reserve team coach to join the Royals last summer.

But Stam's agent Henk van Ginkel this week denied the ex-Manchester United defender was heading back to Ajax to replace Bosz following his move to Borussia Dortmund.

“Jaap Stam will definitely not be a trainer at Ajax,” Van Ginkel told Voetbal Primeur.

“Jaap is in his mind in England, and he is not at all approached.”

Reading Chronicle:

Jaap Stam guided Royals to third in the Championship table in his first season in management.

Odds on Stam replacing Monk at Elland Road have also tumbled. He is now second favourite with Sky Bet at 5/2 behind former Royals boss Alan Pardew (5/4).

But the Chronicle has been told there is little truth in the rumour and that there has been no contact between Reading and Leeds.

Monk is now on the verge of being named Middlesbrough's new boss.

Meanwhile, Stam is set to sit down the Royals board to discuss his future when he returns from a family break.

The Reading boss will also hold talks with Chinese owners Dai Yongge and Dai Xiu Li who look certain to release funds for Stam to use in the transfer market.

Stam dropped a major hint that he has no intention of leaving Reading before the play-off semi finals began last month.