Hertha Berlin reached the knockout stages of the Premier League International Cup, and inflicted Reading's third straight defeat in the competition, with a 2-0 win at the Madejski Stadium.
Second-half goals from Sidney Friede and Nico Beyer guaranteed top spot in Group F for Hertha, who drew 2-2 with Athletic Bilbao and beat Everton 3-1 in their other group matches.
The six group winners and two best runners-up qualify.
Everton need to beat Bilbao in the final match of the group at Goodison Park on 21 December and await results in other groups to decide their fate.
REPORT | U23s fall to German giants @HerthaBSC in well-contested game at Madejski Stadium... https://t.co/Og75zAdeF3 pic.twitter.com/M7ZTkRxl2l
— Reading FC (@ReadingFC) December 14, 2016
See: Premier League Cup explained | Premier League Cup tables