The Leeds club is seeking to buy a 50 percent stake in the Australian club, with chairman Peter Ridsdale expected to travel to Australia later this month to finalise the details of a three-to-five year agreement.
The agreement would give Leeds, which already has two high-profile Australian players, access to more than 11,000 registered junior players in Sydney.
Newcastle United are also reported to be exploring links with an Australian club, although they are not believed to be seeking a stake in their target - Australia’s Newcastle United.
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