The Royals have been trying to tie the 24-year-old down to a new deal all season, but he has refused to sign and is reported to have told Nigel Adkins over the weekend he wants to leave.
Liverpool have long been linked with a move for the central defender, who has not been a regular in the Royals side this season, and a move looks to be on the verge of going through.
Reds boss Brendan Rodgers is on the look for Jamie Carragher's replacement as the veteran stopper is set to retire at the end of the season and Pearce could be the man.
Rodgers is also being linked with a move for Royals goalkeeper Alex McCarthy and a double swoop could be on the cards following Reading's relegation to the Championship.
Reading last week