Rutter, 21, joined the Elland Road outfit from Hoffenheim in January for a hefty fee but was unable to live up to expectations, seeing his playing time restricted on the pitch.
The French forward made eleven league appearances for the Whites after arriving in January and bagged only one assist without finding his name on the scoresheet.
It is claimed that the payment for the 21-year-old was a club record €40m, including bonuses, and Leeds paid €28m to Hoffenheim as an initial payment.
Now, according to German magazine Kicker, the relegation of the Yorkshire side from the English top flight will not affect the remaining payments agreed with Hoffenheim for Rutter.
There were no clauses in the agreement which would affect the amount Hoffenheim bank for Rutter in the event of Leeds’ relegation.
The 21-year-old was chiefly used as a substitute for the Whites after his arrival at Elland Road in January.
Before making an appearance in Leeds’ final league game in the Premier League this season against Spurs, the French forward was benched for six successive matches.
As the Whites have been relegated now, all eyes will be on Rutter whether he will continue his journey in the Championship next season or will be looking to be shipped out for top-flight football.