Iraola is Leeds’ number one target for their vacant managerial role and Victor Orta was in Spain on Wednesday to work out a deal to sign him.
The Spaniard is intrigued by the possibility of managing Leeds in the Premier League despite their current struggles.
Leeds are even prepared to pay the €8m release clause in his contract in order to take the 40-year-old Elland Road.
But according to Spanish sports daily Marca, it is where the Spaniard has stopped short of forcing his way out of Vallecano.
It has been claimed that Iraola does not want to leave the Spanish club through the mechanism of the release clause.
He has built a strong relationship with the club and their fans and do not want to spoil that by forcing his way out.
Vallecano have made it clear that any club wanting Iraola will have to pay his release clause and they are not interested in any negotiations.
Unless something changes soon, the Spaniard will remain at Vallecano until the end of the season when his current contract expires.
