National media are suggesting Royals owner Anton Zingarevich is ready to spend millions in the transfer window in a bid to avoid a relegation battle.
But manager Brian McDermott insists the stories are untrue.
"Anton did not say he was going to sign 10 players in January," he insisted. "First and foremost, we haven't got those kind of finances.
"What Anton said was that we might be looking at 10 players which happens all the time. Our scouts are always keeping tabs on what's out there, that is normal for any club.
"But the bottom line is we don't have the finances to bring in 10 players even if we wanted to."
And he stressed: "The important thing is I don't want mixed messages being put out there so people get the wrong end of the stick."
Nevertheless, Reading continue to be linked with Arsenal's out-of-favour Andrey Arshavin, 31.
Gunners' record £15 million signing is a friend of Reading owner Anton Zingarevich and a Russian international team-mate of Pavel Pogrebnyak.
Royals striker Pogrebnyak told a Russian website: "It's Arshavin who has to make the decision.
"Anton Zingarevich knows him well enough without listening to my opinion, as he is from St Petersburg.
"Andrey is a master and there is no doubt that it would be great to see him at Reading."
However, McDermott added: "I don't talk about players who belong to other clubs. We may do something in January but we won't be spending the kind of money people say we will be spending."
Meanwhile, Reading moved a step closer to persuading Alex Pearce, 23, to sign a new long-term contract this week.
"I spoke to Alex Pearce again on Saturday and he knows I want him to sign his contract and he says he wants to get it down too," revealed McDermott.