Reading are preparing for a significant January transfer window as they look to avoid relegation to League One

A points deduction has left Veljko Paunovic's men in a difficult position, as they're just one place and two points above the relegation zone as they approach the halfway mark of their campaign.

Therefore, having a good window is imperative for the Royals, although it could be challenging as they face a battle to keep hold of several key men.

Here we look at some potential deals that could happen involving Reading...

In: Andy Carroll

This isn't technically a new signing because Carroll is currently at the club but the striker will see his deal expire in less than two weeks.

So, with his contract up, there are doubts about his future, with Paunovic revealing that talks are underway over an extension. And, he seemed pretty confident that the former Newcastle man would remain until May at least, which would be a big boost for Reading.

Out: John Swift

This is not something that the Berkshire outfit will want to do but the reality is that with Swift's contract running down he is going to be subject to bids.

His numbers in the Championship have been outstanding this season and he has the ability to make an impact in the top-flight.

Reading will need to hold out for a decent fee for their key man but cashing in and reinvesting seems like the more sensible option than letting him leave on a free given the financial issues the club have had.

Out: Tom Holmes

This is another deal that Reading won't want to happen but Nottingham Forest are serious about trying to sign the defender, who is another out-of-contract in the summer.

Whilst the Royals would be entitled to compensation in the summer if he went on a free, it's still not what they will feel he is worth, so they could face a tough decision if Forest make a suitable offer this month.

Holmes leaving seems more unlikely than Swift, but it could still happen.