Karacan has been at Reading for eight years but rumours had suggested that he was looking to leave the Madejski Stadium. However, Karacan has denied that was the case.
The 23-year-old said: "There is nothing to believe in the rumours. I don't know where it has come from.
"I've been here at Reading for eight seasons and I am looking to be here a long time further.
"Hopefully a new deal will be sorted within the next week."
Karacan returned to action at the weekend for the first time since breaking his ankle in April.