Reading have taken the option to extend Michail Antonio's contract until next summer, ending Southampton's hopes of signing the winger on a permanent basis.
Antonio, 20, made his Royals debut at the start of this season before joining Saints on loan in October, where he has made a total of 38 appearances and scored seven goals up to now.
The League One club had hoped to turn his loan deal into a fixed contract and the two clubs were understood to be in talks, with Antonio himself admitting he would be happy to stay at St Mary's to get first-team football.
But, with his current contract set to expire this summer, Reading have activated a clause which extends his stay in Berkshire for another year.
It remains to be seen whether Saints will attempt to negotiate another loan arrangement for 2010/11 but such has been his progress this term that Royals boss Brian McDermott may himself wish to unleash him on the Championship.
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