The Blades are sitting pretty in second place in Division One and Warnock is one of the names being touted by the bookies to fill the hot seat at Elland Road.
But former Leeds, Spurs, Barcelona and England manager Venables told the Sheffield Star: "Neil Warnock has produced an excellent side at Sheffield United this season and has the bravado to take it on.
"But I can't see why he would risk it when there is a real chance his club will be trading places with Leeds at the end of the season.
"Leeds are in trouble because they have lived season to season."