AMBITIOUS Sunderland boss Peter Reid, who has guided his side to second place in the Premiership, last night insisted the hard work is still to come.

"Everything is going great - but we have to got to the next stage and get up there with the big boys," said the Wearside boss as he prepared for a tough FA Cup Third Round replay at Crystal Palace tomorrow night.

Reid flew to France twice last week to check personally on possible targets and he is prepared to break the club's transfer record, which currently stands at £4.5m, to add further quality to his squad.

Saturday's 2-0 victory at West Ham in front of new England manager Sven-Goran Eriksson took Sunderland to second place in the top flight for the first time in half a century.

Now, with a place in Europe beckoning, Reid wants to make sure that his side is equipped to keep up their challenge.

Reid said: "We have got internationals here, good players and a passionate crowd. The League table shows we are in second place at the moment but I still think we are a bit off being there.

"But you can't do it overnight. People talk to me about spending money and yes, you can do that. But you can spend money and get it wrong. You have to be sure about players and you are not going to get every transfer right.

"The players I want, some of them aren't available and it makes it difficult. I would rather wait for them to become available rather than take a gamble."

The huge wages being demanded by the game's top players will not deter Reid in his quest to bring the best to Sunderland.

He said: "Football is a market place and in a market place you have to compete.

"Players have only got short careers and some of the figures being bandied about I think are ridiculous, but as a manager it is a difficult job getting these players in.

"We are competing with other clubs so obviously if you want to compete in the market place you have got to have a go.

"Some of the figures which have been mentioned are a wee bit on the high side for me. But to get the best players in to improve your team or your squad these are the players you have got to look at.

"We are in the same League as the Arsenals and the Manchester Uniteds and sooner or later you have got to compete with them."

Reid is happy with the way things are going and said: "Certainly the club is on a really good footing at the moment - I feel that within the football club."

But he stresses that Sunderland, who just missed out on European qualification last season when they finished seventh, have still got it all to do this season.

He said: "The job is only half done, there is still nearly half a season to go and we have to keep it going.

"We ain't done anything yet and nothing is won or decided in January or February. We have to keep going straight to the end and that's what we are hoping to do."

Sunderland are desperate to make progress in the FA Cup at Selhurst Park tomorrow night and qualify for an attractive home tie against Ipswich Town in the next round.

But Reid knows how tough it will be against a First Division side which knocked Sunderland out of the quarter finals of the Worthington Cup and last week beat Liverpool 2-1 in the first leg of their semi-final.

He said: "It's going to be a hard game because Crystal Palace are on fire at home and Selhurst Park hasn't been a happy hunting ground for us - we've got to change that on Wednesday night.

"But the lads did well at West Ham and they will be up for the FA Cup replay."

l Last night's reserve game with Liverpool at New Ferens Park fell victim of a frozen pitch.