The Independent report that the England striker was contacted after making noises that he would not dismiss joining them now that Leeds had been relegated.
Smith has decided they are his first choice and assuming he is able to agree terms, his move will not only disappoint the Leeds faithfull but also several other clubs including Newcastle United, Middlesbrough, Birmingham City, Juventus and Valencia.
Being a Leeds born lad Smith is all too well-aware of the Roses rivalry and he will have seen and heard the abuse that Rio Ferdinand and Eric Cantona received from fans following their moves from white to red.
Indeed, he caught the wrath of the away fans at Stamford Bridge on Saturday for purely indicating that he would consider an approach from across the Pennines.
The two clubs are yet to agree a fee but with Smith still under contract, the financial crisis means Leeds must remove him from their pay roll.
Smith is on standby for Euro 2004 and scored his on his international debut against Portugal.