The 50-year-old Royals boss is listed among the potential contenders poised to take over at Molineux after Mick McCarthy was sacked on Monday.
Reading say they are not surprised by the link considering McDermott's outstanding managerial record at the club over the past two years.
But director of football Nick Hammond says there has been no contact from the Premier League strugglers and that McDermott is very much here to stay.
Speaking exclusively to the Chronicle, Hammond said: "Look at Brian's record since he became our manager, it is exceptional.
"We've got a great environment here at Reading that works very well. We're very tight as a group of staff, it's a method that has been successful for many years now.
"What that does is allow a manager to work how he wants and in a way that suits him. I think we have seen the benefit of that.
"The fact is his record is right up there with the best managers in the country, so why wouldn't he be mentioned in those sort of terms?"
When McDermott took over the reins in December 2009 on a caretaker basis it was his first managerial role in league football.
He immediately transformed the team's fortunes, guiding them away from relegation danger to the brink of the play-offs.
The following season Royals reached the Championship play-off final before a heartbreaking defeat at Wembley by Brendan Rodgers' Swansea City.
But McDermott quickly recovered from the blow and his in-form side are challenging for promotion again this season and could climb as high as third in the Championship tomorrow night if they beat Burnley at Madejski Stadium (8pm ko, live Sky Sports).
McDermott is now one of the most revered managers outside the top flight and was one of the first names linked to the Wolves job along with Alan Curbishley, Chris Houghton, Steve Bruce and Neil Warnock.
Hammond, though, insists there has been no approach from the Midlands' club.
"I know the Wolves chief executive Jez Moxey well but I haven't spoken to him in the last 48 hours," stated Hammond.
"I'm sure he has a lot on his plate at the moment. Mick McCarthy did a wonderful job there and I'm sure the club had a very difficult decision to make.
"There are good people at Wolves. We've dealt with them a lot in the past concerning Kevin Doyle, Marcus Hahnemann and other players and we have a good relationship."
But he also stressed: "Brian just wants to concentrate on business here. There are so many games coming up soon that's all he wants to think about.
"There will always be talk and speculation when a manager is winning matches in the way Brian is.
"But we can't really think too much about that peripheral stuff because our focus is on the games ahead."