Reading owner Dai Yongge has flown into England for crucial takeover talks, in a major development for the crisis hit League One club.

Yongge is assessing a number of offers to buy the club and is expected to make a decision on a preferred bidder early next week.

Former Newcastle owner Mike Ashley and Genevra Associates, an investment group based in Luxembourg, are understood to be two parties interested in acquiring the club, who are currently bottom of the third tier.

Yongge is under huge pressure to sell up and the next few days are regarded as vital for Reading’s short-term future.

Once Yongge has selected a preferred bidder, a period of exclusivity will be granted for the party to complete a deal. If that process runs smoothly, Reading could have new owners by the start of next year.

Genevra Associates are understood to have recently submitted a revised and final bid, and remain hopeful of agreeing a deal with Yongge.

William Storey, the British businessman, recently pulled out of talks despite initially claiming he had agreed a contract and exclusivity in October.

Yongge, who is based in China, is ready to sell up after a stormy tenure in which the club has been docked 16 points by the Football League for financial breaches.

A winding-up order by HMRC was dropped earlier this week after Yongge settled an overdue tax bill, but the club remains in severe financial difficulty.

Mark Bowen, the head of football operations, admitted in a statement on Thursday that a sale of the club could be close.

“Daily operations at the club continue to be hamstrung by cashflow problems, the search for new owners is encouraging but naturally time-consuming,” he said.

“We are in constant discussion, negotiation and engagement with an encouraging number of individuals who, we believe, are all capable of making viable takeover bids.

“It is very difficult to speculate on the timescales involved, but I am very positive that this process is now nearing a much-needed conclusion.”