The deal gives the club until 19 January to attract a buyer or significant cash injection in a bid to avoid administration.
The Financial Times said analysts were putting the price at between £30m and £50m. The chance to buy a prestigious premiership club for potentially less than what Real Madrid paid for Luis Figo (£37m) may prove a tempting lure.
There has already been an approach from Sheikh Abdulrahman al-Khalifa who, as well as being a long-standing Leeds fan, is also a member of the Bahrain royal family.
Closer to home, Allan Leighton, the club’s deputy chairman, has resigned from the board ‘to avoid any conflict of interest’ should he opt to mount a bid. He has already offered to put a £2.2m loan at Leeds’ disposal to help the club through its current difficulties.
Professor John McKenzie, the Leeds chairman, said: ‘I am pleased to announce, on behalf of Leeds plc, that we have now agreed the first stage of a financial restructuring programme.’
The club, which has long-term debts of about £80m, is being run by former Ernst & Young turnaround specialist Trevor Birch, who is chief executive.
Political and economic uncertainty behind the fall in confidence
Just Racing Services, operating company of the Manor Racing Formula One team has entered administration
Last year 16 oil and gas companies became insolvent, finds Top Ten firm Moore Stephens
Team Rock the publication of classic rock is in administration with FRP Advisory