Leeds have already signed three players from Italian clubs this summer under new owner Massimo Cellino and Petagna is seeking more playing time after making just five appearances for Milan.
The 19-year-old went on loan to Sampdoria last season and, with Milan happy to loan him out again, agent Giuseppe Riso confirmed Leeds could suit the youngster.
"Andrea will leave AC Milan on loan to gain experience," he told calcionews24.com.
"There are a few Serie B's teams interested in him, like Crotone, Latina and Perugia while in Serie A Cesena like him.
"But it is not said that Petagna remains in Italy. I know that (Massimo) Cellino's Leeds like him too, we'll see what AC Milan decide to do."
For the big stories and the banter follow us on Twitter: @tribalfootball