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The Royals went ahead when the assistant referee mistakenly awarded a goal instead of a corner after the ball had gone four yards wide of the goal.
"I've seen it and my conclusion is obviously that it wasn't right," Coppell told the club's website.
"If the authorities decide a replay is the correct thing to do then I've got no objections whatsoever."
The 'goal' was registered as an own goal by Watford's John Eustace.
He thought his side had been given a goal-kick after a corner had hit him and gone out of play before being hooked back in by Reading's Noel Hunt.
Assistant referee Nigel Bannister advised referee Stuart Atwell to give the goal, to the horror of the Watford players.
"I'm not sure there's a precedent but if that's what people decide then I am quite happy to do it," added Coppell.
"We don't want to be seen to be taking advantage of anything.
"I have sympathy with Watford and I really don't know what to say to make it right.
"But if the Football League phone me now and say something was definitely wrong I'm happy to go along with it."
Reading keeper Marcus Hahnemann believes replaying the game would set a dangerous precedent.
Speaking to 5 Live, he said: "I think everybody would be happy to replay it but then where does it stop?
"We should have had a penalty in the game so do we have to replay the game now as we could have scored from the penalty.
"If the referee makes a mistake do we now need to replay a game?"
Professional Game Match Officials Board (PGMOB) assistant referees' manager Paul Rejer told Watford's website: "It appears a mistake has been made.
"It will be reviewed by us. If it is a serious error, he will regret it.
"It was the assistant referee who gave the goal and from his position and angle it appeared the ball had crossed the line for a goal. He has made a human error.
"The referee has no way of knowing for definite; he was relying on his assistant referee to make that decision.
"Performances by referees and assistant referees are reviewed after every game, both on the day and by DVD."
Former Premier League referee Graham Poll said the decision was inexplicable and had sympathy for the Watford players and manager, Aidy Boothroyd, who was sent to the stands after remonstrating with the officials.
Poll told BBC Radio 5 Live: "This is the most bizarre situation I've ever seen in 40 years watching football and 27 years refereeing.
"I heard about it then watched the highlights thinking 'it can't be how it's described', but it is. He (Bannister) has got a clear view of it. It's completely inexplicable.
"The referee must be respected, obviously, but in such circumstances, as a player, how do you not lose your temper?"
After the match, Boothroyd told BBC London 94.9: "I went to see the referee and in fairness to him, although he wasn't brilliant today, you can't blame him if there's a guy in his ear telling him it's a goal.
"The linesman has decided it's a goal. I've asked him about it and he said it was an optical illusion.
"I saw the ball go out for a goal-kick and my centre-half has put his hand up and asked for the goal-kick and for some strange reason a goal has been given."
Boothroyd rejected the idea that the Reading players should have allowed let Watford score after such an error.
"I don't expect players to take things into their own hands. It's not up to them," he added.
"If someone stops you in a car park and gives you a present you don't say no do you?"
Coppell also played down the emphasis on the players to take action.
"The responsibility is not with the opposition to right a wrong. It is up to the officials to get it as right as they can," said Coppell.
Reading winger Stephen Hunt was bemused by the decision but tried to alleviate the blame from referee Atwell.
Hunt said: "It was a screamer! No, it was probably the worst decision I have ever witnessed.
"We can't do anything about it. It's not our mistake, but what can you do? You can't say 'no ref, it wasn't in'.
"He seemed all right. He's a young referee. But after this he'll probably be sitting at home next week.
"I've had him before and he's been all right. It was just a bad day at the office. He talks, he respects you and you respect him.
"I can understand Watford's frustration, but everyone makes mistakes."
(BBC)
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