The London-born player has agreed personal terms, and will make the switch to the Berkshire club once he has passed a medical.
The transfer fee involved is said to be around £3.75 million, and there is reportedly also a 35% sell-on clause involved in the former Portuguese youth international’s contract.
The 23-year-old centre back grew up in the Algarve region of Portugal, and progressed through the ranks at Lisbon side Sporting CP before making an impression on the first team.
His performances for the Portuguese outfit led to his services being acquired by Premier League giants Liverpool back in 2014, with the Anfield club paying a fee of £7 million to bring Ilori to Merseyside.
However, despite high hopes once being held for the player, who was tipped for a successful career in the Premier League once upon a time, he has struggled to impress for Liverpool, and has failed to make a single Premier League appearance in a red shirt so far this campaign.
Reading manager Jaap Stam was reportedly keen to bring Ilori to the Madjeski Stadium because of his ability with the ball at his feet, and it remains to be seen whether the Premier League flop will flourish in the Championship under new boss Stam’s attractive, possession-based brand of football.
Reading take on QPR this weekend in the league, as they look to resume their promotion push with another win on home soil.