“Anton Zingarevich said something very important to me and after that there was only one place I was going to be at”
"This is my club, the fans are really important to me and I have great staff, players and we work so well together," McDermott added on BBC Radio Berkshire.
"But the big thing for me was my relationship with the new owner Anton. I had a conversation with him on Sunday and another one on Monday. He said something very important to me and after that there was only one place I was going to be at.
"The manager's relationship with the owner if very important and we are building that rapport with each other."
McDermott added that the messages of support from Reading fans as the news of his potential departure emerged also helped in his decision to remain at the Royals.
"I know what the fans think of me, but I was still very touched by the support they gave me and it means a lot," he said.
"We've been talking for three weeks now and it's good to get it done. Now myself and everyone else can concentrate on the football.
McDermott added: "You would be swayed by the Premier League whichever club you were at and Wolves is a great club.
"As a manager and a player you have ambitions to be in the Premier League but all things being equal there was only one place for me."
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