The signing of Cristiano Ronaldo from Juventus has raised serious concerns over the Wales international’s future at Old Trafford.
James is likely to fall further down the pecking order following the Portugal international’s arrival and could see his playing time reduced significantly.
Manchester United are said to have informed teams that they are open to offers for the Swansea City star and Leeds are among clubs that are paying attention.
The Whites are now in advanced negotiations with the Red Devils over the permanent transfer of the 23-year-old.
Manchester United are claimed to be open to letting James leave on a permanent deal for the right price and it remains to be seen how much Leeds are willing to pay.
The Yorkshire-based club are holding talks with James over personal terms as they look to strengthen their attack before Tuesday’s transfer deadline.
Leeds are long-term admirers of James, who had a move to Elland Road, from Swansea, fall through previously.