The Premier League side were linked with Luis, but a move did not materialize.
Now the reports are confirmed by Orta, who admits the issue was that signing Luis would not have gotten enough game time right away.
Benfica wanted him to go on loan initially, and to a club where he would play a lot.
As he is a defensive midfielder, Leeds would struggle to fit him and Kalvin Phillips into the same team.
Orta told reporters: "Yes, we liked him (Luis), but Benfica wanted to loan him out to get minutes.
"And in that position Kalvin Phillips plays, a player of Leeds' academy.
"It was an operation from which no-one would benefit."
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