Former France Under-21 worldwide Amavi cost £7.7m when he moved to Villa Park from Nice in July 2015 on a five-year deal but he dropped down the Villans' pecking order and will now look to reignite his career in Ligue 1.
The French worldwide was withdrawn from the Villa squad that was set to play against Colchester in the Carabao Cup after a bid was accepted.
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Last season Reading came very close to promotion, losing to Huddersfield on penalties in the play-off final, and will look to go one better this season.
France Under-21 global Amavi was expected to complete a move to the Liga side worth $A13.2 million before the deal fell apart, much to the ire of Villa owner Tony Xia.
The former French Under-21 global had looked set to join La Liga side Sevilla in July, but failed a medical because of his previous knee issues.