The 25-year-old has a contract with Wolves coming to an end in 2023, but the Premier League side are keen to see him put pen to paper on a fresh contract.
Wolves and Traore were said to have resumed talks last month following a halt in negotiations, with both parties claimed to be keen to reach an agreement.
While Wolves remain hopeful of tying Traore down to a new deal, Leeds have been monitoring the forward’s situation at Molineux from afar for some time.
The Whites are long-term admirers of the Spain international and retain an interest in acquiring his services despite the player being in talks with Wolves over a new deal.
Marcelo Bielsa’s side are said to be trying to determine how much it will take for them to snareTraore out of Molineux and are prepared to pay a fee in the region of £40m.
It has been suggested that Wolves value the former Barcelona youth star at around £80m, but the Yorkshire-based club would look to pay about half that amount.
Following the exit of manager Nuno Espirito Santo, Wolves are undergoing big changes and it has been claimed that Traore could be allowed to leave the club.