The 24-year-old has been a standout performer this season, and Reed admitted that contract talks with the England international are progressing well.
"Nathaniel has said he is happy here", he said on the club's YouTube channel. "We are at a very good place at the moment and I'm confident we will have a resolution sooner rather than later."
"I'm in discussions and those have been very, very positive."
Reed has overseen the development of a whole raft of impressive Southampton youngsters since arriving at the club in 2010, and the Saints recruitment of Clyne from Crystal Palace two years later saw the South Coast outfit land a future England right back.
Unsurprisingly given his form, Clyne has been linked with the likes of Manchester United this season, according to reports in the Metro, but just as predictably, Reed and those at Southampton are reluctant to let another fullback move to a Champions League side.
The Saints have seen Luke Shaw move to Old Trafford and Calum Chambers make the switch to Arsenal over the last year, and with Southampton now in and around the top four themselves, they will be committed to tying their stars down to the contracts that will keep them at St Mary's.