The move was confirmed by an agent close to the deal who said that contact had been made between the two clubs, due to Leeds' financial plight.
Blues boss Steve Bruce offered £2.5m for the England international, and was politely told where to get off by United.
Leeds decided to hold on in the event that their financial situation could be sorted out and they now appear to have been rewarded for that decision.
Although his goal record is not impressive, Blues co-owner David Sullivan fancied the prospect of signing the 23-year-old.