The Premier League side are without a manager after sacking Mick McCarthy and 50-year-old has been spoken about as a possible replacement.
The Royals are currently sitting in the Championship playoff positions after three consecutive wins and Hammond isn't surprised that McDermott has been linked with the job at Molineux.
He told the Reading Evening Post: "There will always be talk and speculation when a manager is winning matches in the way Brian is.
"But we can't really think too much about that peripheral stuff because our focus is on the games ahead."
The Director did however elude to the fact that the two clubs have done deals before and they have a good relationship.
"I know the Wolves chief executive Jez Moxey well but I haven't spoken to him in the last 48 hours," Hammond told the Reading Evening Post.
"I'm sure he has a lot on his plate at the moment. Mick McCarthy did a wonderful job there and I'm sure the club had a very difficult decision to make.
"There are good people at Wolves. We've dealt with them a lot in the past concerning Kevin Doyle and Marcus Hahnemann and other players and we have a good relationship.