City were understood to have identified him for a possible role believing he had the credentials to repair the damage left by 12 months of boardroom upheaval.
His name was discussed by the club's hierarchy with City currently having no chief executive.
Birch's main job at Leeds will be to restore sound finances.
It is expected Birch, who was formerly with Chelsea prior to Peter Kenyon's recent arrival at Stamford Bridge, will officially be appointed next Tuesday when Leeds make public their latest year-end accounts.