The Derby defender spent the second half of last season on loan at Birmingham after struggling to nail down a regular starting spot at the iPro Stadium amid increased competition for places.
Shotton performed well on loan with the Blues, impressing boss Gary Rowett and consolidating himself as a first-team regular with nine Championship starts including six in succession in April.
Reading's Stephen Quinn in action with Birmingham's Ryan Shotton
The report claims that both clubs have opened dialogue in regards to a permanent move, and it is said that the defender would be keen to re-join the Blues having enjoyed his time at St. Andrews.
Shotton initially joined Derby from Stoke City under then boss Steve McClaren, yet he struggled to break into the first-team and opportunities were even more limited after the addition of Jason Shackell and Alex Pearce.
Middlesbrough's Stewart Downing in action with Birmingham's Ryan Shotton
New Derby manager Nigel Pearson will assess his squad in the coming weeks, yet it’s likely he will allow one or two defenders to leave as the club currently have as many as six centre-backs on the books.
The 27-year-old made a difference at Birmingham last season, and for the sake of his career he would be wise to pursue a permanent deal to the West Midlands club this summer.
Birmingham’s Ryan Shotton and Burnley’s Ashley Barnes