Former Saints boss Nigel Adkins reportedly wanted to bring the 31-year-old to the Madjeski Stadium.
Reading have denied they approached Southampton with a view to signing striker Rickie Lambert, the Basingstoke Gazette understand.
The Royals are preparing for the new Championship season, which kicks-off on 3 August, following their relegation from the Premier League and manager Nigel Adkins is determined to bolster his striker options before the opening game against Ipswich.
Reports have since emerged that he had his sights set on Lambert, who scored 15 goals in his maiden top-flight campaign, and was preparing to make an offer to his former employers.
The 31-year-old was a pivotal member of Adkins’ squad during his reign on the south Coast, scoring 57 goals in 110 games as the club rose from League One to the Premier League thanks to back-to-back promotions.
However, a source from the Madjeski Stadium has now confirmed the move is a “non starter,” before stating that neither club had entered into dialogue regarding the Saints number seven with a fee of £8 million being quoted.
Mauricio Pochettino is thought to be targeting the addition of a new forward before the transfer window closes meaning Lambert faces an uncertain future at St Mary’s despite recently signing a three-year extension to his contract.
Brazillian star Leandro Damiao has been mentioned but his imminent switch to Zenit St Petersburg will force Pochettino expand his search.