I could have written your post OP!!
I'm in the exact same situation. DS would happily have me sitting with him and being read to for hours at a time, but he doesn't really want to read any book himself. He gets frustrated and angry if i suggest it to him and I feel like we should be doing a few mins of reading practise everyday.
He does better if I suggest him sounding out words on road signs or shops, or even the books I am reading to him (we read Julia Donaldson, Dr. Suess, Octonauts, etc , actually whatever he is interested in, and he loves books and listening to the stories) he will try and sound talk the odd work here and there.
But the reading stage books, not so much, as he thinks of it as "work" I suppose.
He also likes the reading eggs games and will happily do that. He started doing that at home at the start of reception and I think it has really helped him. He likes computor games etc so it was like a game to him, and it really helped with his blending too.
He is actually very good at blending, can sound talk "in his head" and read words at a stage 2 level and is in the top phonics group at school already well in to learning phase 3 phonics. But he really doesn't want to read himself and not interested in learning to read apart from at school and with the reading egg games. But that's fine for me though, so I'm trying not to push him. It is hard though, when you know they can do it, but refuses to even try!
Me and DH were both early readers, way before 5, and avid readers still, and when I was young, even DS's age, reading was my THING and it was for years, and I got so much pleasure from reading and the world it opens up to you that I really really want this for my DS, so I think I'm being impatient because of this.
My DD on the other hand who is not even 3.5 (will be youngest in her class), from having sat with DS whilst he is doing his reading eggs games, has picked up most of the phonic sounds and now can read " cat sat on a mat" type stuff, and more willingly than DS! She will start school this year being able to read and DS hardly knew any phonics at all when he started!