Bates resigned as chairman of Chelsea in March last year, citing that he could no longer work under the new regime of Roman Abramovich.
He has been looking to invest in another club for some time, Sheffield Wednesday and Luton Town, two clubs associated with the controversial figure in recent weeks.
Leeds spokesman Bryan Morris confirmed: "We are still talking to all consortia and Mr Bates is one of those.
"No deal has been finalised, but as soon as negotiations are concluded we will issue a further statement."
Sebastien Sainsbury withdrew his £25m offer for the Championship club last week.