The Whites have admitted Arsenal have expressed an interest in Kewell but denied claims they are currently talking over an imminent deal.
Leeds chairman John McKenzie told the club's website: "We still hope Harry will stay but we can't do anything with regards to our contract talks until he comes back from holiday next week."
Kewell still has one year to run on his present contract but if the club fail to tie him to a longer deal he can leave on a free transfer under the Bosman ruling in 12 months' time.