Reading manager Brian McDermott has signed a new contract at the Championship club, ending speculation linking him with the vacancy at Premier League Wolves.

The 50-year-old has put pen to paper on a three-and-a-half year extension to his current rolling contract, a few days after Wolves requested permission from the Royals to speak to McDermott.

"We are delighted to announce that manager Brian McDermott has this afternoon agreed a new contract to keep him at Madejski Stadium until the summer of 2015," read a statement on the Royals' website.

"Brian is one of the brightest managers outside the Premier League, and it is a major coup for the club to have secured his services for another three and a half years."

McDermott guided the Berkshire club to last season's play-off final which they lost to Swansea, and has seen them climb to fourth in the league this season, just five points behind second placed Southampton.

Reading travel to face fellow play-off chasers Middlesbrough on Saturday afternoon, and the Royals are available at no better than Bwin's 37/19 to claim the three points.