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Glenn Murray will sign a new Crystal Palace deal which will tie him to the Selhurst Park outfit until 2017, the South London Press have reported.
The striker scored 8 goals in 18 Championship appearances for Reading FC in the first half of the season, after being told by former Eagles boss Neil Warnock that he was bottom of the pecking order.
The Royals pounced on the final day of the 2014 summer transfer window to capture the Maryport born striker on a short-term loan deal with an option to buy; though that option now looks extremely unlikely, especially given FFP restrictions the club face.
The 31 year old was in good form towards the end of his loan, with three goals and an assist in his final four games with the Biscuitmen.
Murray started for Palace in the 4-0 FA Cup win over Dover at the weekend, which was former Reading gaffer Pardew's first game in charge since joining from Newcastle.