Reading will have to settle for a place in the Championship play-offs after a goal from Kevin Phillips handed Birmingham a 2-1 win at the Madejski.

The Royals knew a win over Birmingham would have seen them promoted if Sheffield United failed to win at Crystal Palace but defeat made the result in South London irrelevant and Steve Coppell's side will now face Burnley in the semi-finals.

The Blues had the lead in the 19th minute as James McFadden took a corner which was cleared back to him and he drilled a second cross deep to the back post.

Phillips cushioned a header down to Keith Fahey and, after cutting in from the left, the Irishman curled in a shot from the edge of the area which should have been gathered by Marcus Hahnemann but somehow squirmed through his grasp and over the line.

The visitors struck the second goal in the 60th minute. A throw found its way back to Fahey and he clipped an immaculate first-time pass to release Phillips, who was level with Michael Duberry. The home side called in vain for an offside flag while Phillips showed some trademark composure to calmly roll the ball wide of the advancing Hahnemann and into the far corner.

That appeared to be that but Reading found a way back into the game with a goal just a minute later. A set piece was brought under control at the back post by Dave Kitson and he smuggled it back to Marek Matejovsky on the edge of the area who arrowed a right-footed shot past Maik Taylor and into the bottom corner.