According to the Daily Mail, the Royals will be hit with a six-point deduction amid claims they have failed to comply with an EFL business plan.
Reading were given the same punishment last season for breaching financial rules, with six points docked that saw them slip from 16th to 19th in the Championship table.
However, the English club survived in the second tier after collecting 41 points from 46 matches.
The Royals also had a further six-point deduction suspended until the end of this season, and that is now close to being triggered.
The club have reportedly not reduced their expenditure to comply with the agreed business plan with the EFL.
The punishment will be a big blow to Reading’s survival hopes as it will see them drop from 14th to near the bottom of the Championship table.
They currently have 44 points, which will be reduced to 38 after the penalty.
Paul Ince’s side were eighth in the league standings in December following their 2-1 victory over Swansea City. However, they have subsequently picked up only two wins from their last nine league encounters.
Derby County suffered an incredible 21 points deduction last season for entering administration and breaching EFL rules.
They made a huge effort to survive in the Championship but ultimately suffered the drop to League One.
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