Steve Clarke hasn't given up on signing the Crystal Palace forward just yet.
The 31-year-old scored eight goals in 18 games during a loan spell at the Royals earlier in the season, but returned to Selhurst Park at the end of December.
It is unclear whether new manager Alan Pardew has a place in his squad for the forward as he assesses his new team during the January transfer window.
“I can't say whether it's over,” Clarke said. “There's still an opportunity for that deal to go ahead.”
“Crystal Palace have changed their manager and Alan Pardew will want a few weeks to look at his squad. I'm not going to write that deal off just yet.”
Murray has already spoken of his desire to stay and fight for his place at Selhurst Park, but admitted he will need clarification on the role he will be playing under Pardew.
“It was nice to get some consistent games under my belt at Reading but I’m not looking to get away,” said the striker, quoted by the Reading Chronicle.
“As far as I know, I am a Palace player. I was only on loan at Reading. It is up to the two clubs. It goes beyond me. With the new gaffer, we need to speak and I am sure we will.”
Murray started the FA Cup game against Dover last weekend but failed to make an impact, being replaced by former Reading striker Kevin Doyle at half time.
It is a well-known fact that Crystal Palace were in the market for a forward under former manager Neil Warnock and it is likely Pardew will look to improve that area of his squad as well.
Should Murray be able to impress his new manager however, there is every chance he still has a future at the Premier League side after all.