The youngster scored 20 goals last season and has been linked with both West Brom and Wolves.
But Sigurdsson is keen to stay at Reading as he believes they can manage to return to the Premier League.
“I think it is good for me to be here so I haven’t been looking elsewhere,” the 20-year-old told The People.
“We have been on a good run since Brian McDermott came in as manager and we can definitely go on and make it back into the Premier League.
“We need a good start and then see where we are at Christmas. I scored 20 goals, but I hope to get even more this time.”