The 21-year-old, who is currently on loan at Portsmouth, will be out of contract at the Black Cats when his current deal expires in the summer.
Reed told the Sunderland Echo: "My contract is up in the summer and I've been out on loan a lot, so I've played quite a few league games now. But then you go back and you don't get an opportunity - so it gets a bit frustrating.
"I know I will have to look at my future and I will find out sooner rather than later whether they will offer me a contract or whether I want to find another club and play first-team football.
"I've been there a long time and it will be hard to make that decision if I decide to leave. But every player wants to play first-team football once you've had that taste. There is nothing like league football and if I am meant to play at the highest level, I will get there."
Reed has yet to make a single first-team appearance for Sunderland.