It followed the deduction of 10 points after the club went into administration following relegation to League One in May last year.
United, just five points off the play-offs, served a High Court writ on the League earlier this month challenging the deduction and Ken Bates has revealed the League made their offer of arbitration on the day their deadline to respond was due to expire.
"The letter arrived from the League's solicitors suggesting that this should go to arbitration with a Court of Appeal judge," Bates confirmed.
"To quote their words 'impartiality and independence will be guaranteed and the competence of the tribunal will be par excellence'. Impartiality and independence is what we have been asking for all along.
"What makes me laugh is that it has taken six months to get to this position, six months in which the League have refused to discuss the matter with us.
"Only now, with the writ having been issued, do they instruct their lawyers to come back to us. It is a long overdue development and the pleasing thing from our point of view is that a Court of Appeal judge will hear it.
"After a law lord, they are the highest in the land. The decision to deduct us 15 points was purely one borne of self-interest on behalf of the other clubs."
The arbitration panel would consist of a neutral Court of Appeal judge plus one representative apiece nominated by Leeds and the League.
Asked if Leeds would accept the offer of arbitration, Bates replied: "We will have to discuss what our next move is."