The 20-year-old's performances for the Seasiders in the Championship have earned him a host of admirers, with the youngster scoring 15 goals in 27 league appearances.
He has been linked with a return to boyhood club Liverpool in this month's transfer window but Reading have entered the race for his signature.
Sky Sports reported earlier this week the Royals had made a bid for the winger and McDermott has now confirmed the offer.
The manager hopes the lure of regular first-team football in the Premier League will be enough to tempt the England Under-21 star to join the club.
It is understood that the top-flight strugglers have offered a fee in the region of 7million for a player who scored twice in Blackpool's win at Wolves on Saturday.
Reading have already struck three times in the transfer market this month, bringing in Daniel Carrico, Hope Akpan and Stephen Kelly as they bid to avoid relegation.
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