The Left hand sided Republic of Ireland international played 12 games for Town during a three month loan spell at Portman Road and scored once, and Ipswich boss Joe Royle wanted to sign him permenantly.
However with cash being tight, this has something he has been unable to do, and reports today are claiming that Reading are set to make a £500,000 bid for the player, something which Town will be unable to match.
Speaking of the chance of the move, admitted if any deal was to take place, Blackburn manager Graham Souness would let him know: "Graeme Souness told me that if there's a deal being done involving Alan he would let me know and he's a good enough friend for me to know he will do that.
"I don't know if Reading have offered £500,000, but I know we couldn't compete. It will be a while before we're spending that kind of money again."