Wenger has been linked with the Real job before and the latest rumours have been sparked by comments from the Spanish club's president, Florentino Perez, describing the Frenchman as "a coach I like a lot."

But the Arsenal boss was quick to pour cold water on a frenzy of reports suggesting that Real could be about to make a move for him to replace Wanderley Luxemburgo.

"That's very nice of (Perez) to say that. But until 2008, I have glue on my seat here. My desire is to stay here," Wenger said after watching a youthful Arsenal side sweep Championship leaders Reading aside with a 3-0 win in the fourth round of the League Cup.

Wenger has repeatedly stressed that he wants to honour his commitment to oversee Arsenal's move next year from their Highbury home to the new Emirates Stadium at nearby Ashburton Grove.

But his willingness to see out his contract could be undermined if he fails to hold on to Gunners skipper Thierry Henry, a target for both Real and their Liga rivals Barcelona.

Henry has refused, so far, to sign an extension to his contract and Arsenal could be forced to sell their most valuable asset next summer rather than see him walk away for nothing 12 months later, when his contract expires.

But Wenger remains hopeful of persuading Henry to stay in London. "For me, Thierry Henry is the best striker in the world so we would prefer to keep him here," he said.

Wenger's young Gunners equipped themselves well against Reading and the manager was particularly pleased to see Jose Antonio Reyes end a 12-game run without a goal by marking the opener.

"I kept Jose in the team as I felt he needed a goal to find his confidence again. He always likes to play but when you are a striker and have not scored for a long time like he did, the next goal is welcome."

Reyes has cut a forlorn figure at times at Highbury since admitting last season, during a hoax radio interview, that he was unhappy in London and would be interested in a move back to his native Spain.

But Wenger has not given up hope on Reyes finding the kind of confidence that has characterised Robin van Persie's recent performances.

Arsenal's second goal on Tuesday night made it eight in as many games for the Dutch winger and Wenger said: "Every time he touches the ball, you feel he can score."

Substitute striker Arturo Lupoli was also on target as the Gunners ended a 23-game unbeaten run with a demonstration of the gulf that exists between the top of the Premiership and the top of the Championship.

Reading would have made more of a game of it if they had matched their opponents' touch in front of goal. "We created chances but our finishing was not at its best," admitted manager Steve Coppell.