 Former Chelsea coach Rodgers still lives in Reading
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Reading are set to appoint Watford manager Brendan Rodgers as Steve Coppell's successor.
BBC Berkshire understands an announcement confirming the appointment is imminent.
A compensation fee will be agreed with Watford, as well as Rodgers' personal terms with the club.
Rodgers, 36, has only been in charge at Vicarage Road since November 2008 but started his coaching career at Reading and still has his home in the town.
The Royals have been without a manager since the departure of Coppell following their play-offs semi-final defeat by Burnley in May.
Former Reading academy director Rodgers also had a spell at Chelsea as youth coach and then reserve-team coach before moving to Watford.
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