In a sensational last-ditch attempt to strengthen his squad, Royals boss Brian McDermott attempted to bring the Icelandic international back to the Madejski Stadium, two-and-a-half years after he left England for Germany in a £7.5million deal in August 2010.
Sigurdsson has since returned to the Premier League, initially on loan with Swansea for the second half of the 2011/12 campaign, where he impressed scoring seven goals and making four assists in 18 league appearances for the Swans.
The side from South Wales agreed a £6.8million fee with Hoffenheim for the permanent transfer of Sigurdsson last summer, subject to him passing a medical. But, after Brendan Rodgers left the Liberty Stadium to join Liverpool, the deal collapsed, with Rodgers's new club one of the rival suitors interested in the player's signature.
Eventually, Sigurdsson was snapped up by Tottenham on July 4, for an undisclosed fee, becoming Spurs boss Andre Villas-Boas's first signing at White Hart Lane. However, he has so far struggled to rediscover his best form during a modest six month spell in north London.
"We tried to bring him back," McDermott confirmed. "We had spoken to Spurs and we made three offers. I thought at one stage we had a real chance of doing a deal, but unfortunately, we couldn't manage to do it.
"Gylfi is a Tottenham player, but we've known him since he was 13-years-old and it would have been great to bring him back."
If Reading manage to maintain their top-flight status this season, the Reading Post believes there is a strong possibility that they will renew interest in Sigurdsson again in the summer.