Traore joined Sassoulo permanently last summer after impressing on loan in the previous two campaigns with the Italian side.
He continued in the same vein after signing permanently, making 31 Serie A appearances in the season past and contributing with seven goals and four assists.
The Whites are credited with an interest in the midfielder but face competition from Italian champions AC Milan.
And now the Milan club are drafting a plan to get the midfielder on loan this summer with an obligation to buy, according to Italian broadcaster Sport Mediaset.
The obligation to buy would be set in the region of €20m, while AC Milan are also considering having it dependent upon their qualification for the Champions League.
AC Milan are pursuing Renato Sanches for the midfield role ahead of next season, but it has been claimed that they see Traore as an alternative to the Lille star.
Traore’s contract with Sassoulo runs until the summer of 2024 and it remains to be seen if Leeds are able to sign him this summer with AC Milan providing stern competition.