The Foxes are thought to have been reluctant to bolster a possible promotion opponent during the mid-season transfer window.
Football Insider has been informed by a reliable source that Leicester would have preferred to sell the Australian international permanently, but Leeds only made a loan offer with a buyout option.
According to sources, the Foxes wanted to recover a sizable portion of the rumoured £15.5 million Stoke paid for Souttar just a year ago.
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The centre back has participated in all four of Australia’s games while they are now overseas for the Asian Cup in Qatar with their teammates.
This season, he has played in just four club games for a total of 188 minutes of football. The Foxes’ starting center-back duo is currently Jannik Vestergaard and Wout Faes.
Souttar has played 64 times in the Championship and is under contract at King Power Stadium through June 2028.
Leeds is one of the teams vying with the Foxes in first place for promotion back to the Premier League, currently sitting fourth in the Championship.
In other related news:
Willy Gnonto makes personal admission upon Leeds United’s impact and declares Whites future hope
Following his game-winning goal in a crucial victory against Bristol City, Willy Gnonto has made a difficult and personal statement about Leeds United.
In Friday night’s championship match at Ashton Gate, Gnonto was given just his eighth league start of the year. The Italian entered United’s Championship team in place of Dan James, who is out with an adductor injury.
When Gnonto submitted a transfer request to Leeds last summer, it appeared as though he would be leaving the team. However, he was later added back into the team and proved to be the match-winning player for Leeds against Bristol, 1-0, sending Daniel Farke’s team to second place.
The Italian’s powerful finish in the 47th minute represented just a second goal of the season for Gnonto, who celebrated passionately in front of an ecstatic away end and then admitted post-match just what the strike meant as he outlined his Whites future hope.
“This goal is very important to me,” Gnonto told Sky Sports. “I’ve been through a difficult moment, and I am really happy for this goal for the team, and I hope we can just keep going like this.”
Gnonto said, “I think this is the most important,” in response to a question regarding United’s sense of camaraderie. We have a terrific bunch this season; we get along great; we just want to accomplish our goals and have fun.”
After Gnonto was eventually taken off the pitch in the 83rd minute, Jaidon Anthony came on to replace him. As he left the pitch, the opposing crowd erupted in cheers for Anthony. Farke’s team kept up their relentless high press, which gave Leeds numerous opportunities to score, but Gnonto’s goal was sufficient.