The Spaniard is close to working out a deal to become the next Leeds manager to take charge of the side until the end of the season.
It has been more than two weeks since Leeds sacked Jesse Marsch and several other managers rejected an approach from the Whites.
Gracia has Premier League experience with Watford and has been out of work since leaving Qatari side Al Sadd last summer.
The Spaniard has checked into Elland Road as Leeds close in on making an announcement.
Michael Skubala has been in charge since Marsch left but a defeat at Everton last weekend renewed Leeds’ resolve to bring in a new manager.
Leeds are hopeful that Gracia will stabilise things and keep Leeds afloat in the Premier League by the end of the season.
He is expected to be in the dugout when Leeds host Southampton for a relegation six-pointer at Elland Road on Saturday.
