The 32-year old’s contract expired at the end of last season which concluded his third stint with the Owls.
He played over 200 times for the League One club across his various times at Hillsborough.
Hutchinson was still a useful squad player last campaign for the side, playing 31 times in all competitions.
However, boss Darren Moore opted not to extend his stay with the club going into the new campaign.
That has seen the defender on the lookout for a new club, with Reading now increasingly looking like his next destination.
Hutchinson spent two weeks on trial with the Royals, including featuring in pre-season friendlies against Benfica and West Ham United.
Following the 1-1 draw with the Premier League outfit, Reading assistant Alex Rae all but confirmed the move.
“I think it’s pretty much done and dusted,” said Rae, via Yorkshire Live.
“The one thing about Sam is that he brings a level of professionalism. He is vocal, experienced and he’s fitted in brilliantly so hopefully everything will fall into place with that one.”
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This would make Hutchinson Reading’s seventh signing of the summer as the club looks to navigate the transfer market despite suffering from financial constraints.
The club is only able to add new players who sign as free agents or on loan due to a transfer embargo.
Reading’s Championship season gets underway on July 30 when they face Blackpool.
Hutchinson was a fan favourite at Sheffield Wednesday for his performances in the team.
He is an experienced addition who will bring some quality to the Reading backline.
Given the circumstances surrounding the club, having the extra bodies in itself will be a big boost to Paul Ince’s side.
The recruitment team have done well so far this summer given the restrictions in place on their ability to sign players.