Newcastle recently failed with a £20m bid for the Brazilian forward as the Hornets do not want to sell Pedro.
Leeds chairman Andrea Radrizzani has personally taken over his side’s negotiations for the Watford striker, with a view to adding a player who can compete with Patrick Bamford in Jesse Marsch’s set-up.
Watford sold Emmanuel Dennis to newly promoted Nottingham Forest earlier this summer and could be set to lose Ismaila Sarr as well.
To dissuade Pedro’s suitors in the Whites and the Magpies, Watford have placed a substantial asking price on the 20-year-old forward as they want £30m.
The Hornets plan on returning to the Premier League at the first time of asking and might now face the prospect of having to rebuild their attack with two weeks left in the transfer window.
So far this season, Pedro has made three appearances for Watford, scoring in the win over Sheffield United at Vicarage Road.
Newcastle have had inflated transfer fees quoted to them for their attacking targets all through the transfer window and it is unclear whether they will further test Watford’s resolve.
Leeds, on the other hand, are still easing Bamford back from injury and took him off as a precaution in the first half against Southampton at the weekend.
It remains to be seen if Watford sanction the striker’s exit this summer and where he ends up come the end of the transfer window.