READING FC boss Brian McDermott has been told there is no more money to spend in the January transfer window.

McDermott landed free agent Karl Sheppard last week after the 21-year-old left League of Ireland champions Shamrock Rovers.

The ex-Everton trainee shunned the advances of Blackpool, Cardiff City, Watford and Peterborough to pen a two-and-a-half year deal at the Madejski Stadium.

But it appears there is little chance of McDermott adding further reinforcements to his promotion-chasing squad for the all-important run in, despite fresh rumours linking the club with a forward and a defender.

Speaking exclusively to the Chronicle, McDermott said: "I really don't know if we will get anyone else in. Under the current regime, we don't look like we've got anything (money to spend) at the moment. But you never know in football and we will taking things day by day."

It could be argued Reading do not need to buy anyone this month, with McDermott's men boasting the best form in the division right now.

A run of seven wins in nine league games has catapulted them up to fifth in the table and within sight of the automatic promotion places.

Nevertheless, they continue to be linked with a string of players including Brentford centre-back Karleigh Obsorne.

Like Royals winger Jimmy Kebe, Osborne, 23, has rejected a new contract and could leave Griffin Park on a free in the summer.

With Tottenham Hotspur's Bongani Khumalo set for an imminent return to north London following an unsuccessful loan, Royals could be in the market for cover for Kaspars Gorkss and Alex Pearce.

Grimsby Town striker Liam Hearn, 26, could also be interesting Royals. The prolific marksman has netted 83 goals in 130 games at non-league level, with Chelsea one of several clubs keeping tabs.

McDermott may now try and loan out some of his fringe players like Nicholas Bignall and Brian Howard, though it may make little difference to his chances of signing a new player.

"It's possible we could loan out a few more players, but I don't think it will give us much more room for manoeuvre in terms of bringing anyone in," McDermott explained.

However, news that Reading will not be selling any of their ownplayers will be music to McDermott's ears.

Kebe's future is

shrouded in mystery after the 28-year-old rejected a new two-and-a-half year deal. West Ham United, Stoke City and West Bromwich Albion have been linked with the winger, who turns 28 today (Thursday).

But in last week's Chronicle, director of football Nick Hammond exclusively revealed they are under no pressure to sell Kebe.

McDermott stressed: "Jimmy has been offered his contract and now it's up to him what he does. I'm not being funny but he's got to make up his mind. I want him to stay and I've told him that, but he's got to make a decision."