Portsmouth have succeeded with an offer for Watford forward Tommy Smith, the Championship side confirmed on Tuesday evening.
Reading, managed by former Watford boss Brendan Rodgers, have already had a bid for Smith accepted but Paul Hart's Premier League side have entered the bidding at a late stage.
Smith, who scored 17 goals in 44 Championship appearances last season, is now faced with the dilemma of reuniting with his former manager at The Madejski Stadium or moving to the top flight with Pompey.
"Watford can this evening (Tuesday) confirm the club has received and accepted an offer from Portsmouth for attacker Tommy Smith," a club statement read.
"The Premiership side made their bid for the 29-year-old late on and it is now down to the player to decide upon a move to Fratton Park or Reading."
It has been reported that Smith passed a medical with Reading on Monday and he will not feature in Watford's Carling Cup tie against Leeds United on Tuesday night.