Former Leeds captain Kevin Nicholls has agreed in principle to join Preston North End for an undisclosed fee, reports BBC Radio Leeds.
Nicholls led Luton to promotion from League One in 2004/05
The midfielder, 28, has agreed personal terms but is not set to put pen to paper until Tuesday, 3 July.
Ken Bates' move to buy Leeds back is due to be rubber-stamped by the Football League on that date.
Creditors backed the bid on 4 June, but the Company Voluntary Agreement (CVA) takes 28 days to be formalised.
During the 28-day period any creditor who wishes to dispute the sale can pursue the option of taking the matter to court.
However, once the CVA has League approval, Leeds can then return to the transfer market and the Nicholls deal can go through.
He's a player I have been trying to bring here for a while
Preston manager Paul Simpson
"He's a player I have been trying to bring here for a while," North End boss Paul Simpson told his club's website.
"I tried to get him in January, but it fell through. He's a leader, he gets his foot in, and he can get forward and get goals."
Nicholls was made skipper by manager Dennis Wise after joining Leeds from Luton last summer.
However, he earned the wrath of Wise in March after he asked to leave Elland Road and return to Luton.
Having made just 15 appearances for Leeds, he was stripped of the captaincy and dropped from the first team.
Leeds and Luton were both fighting a relegation battle at the time, and both were subsequently relegated to League One.