Hart has strong Leeds connections and the compensation would not put them off.
Hart played for The Whites between 1978-83 making 220 appearances and scoring 20 goals after a £300k move from Blackpool.
He brought through players such as Ian Harte, Alan Smith, Harry Kewell and Jonathan Woodgate when in charge of the academy at Leeds, winning the FA Youth Cup Final in 1993 and then again in 1997.
The Guardian says Reid will receive a pay-off close to £1m if his contract is terminated by Leeds, even with their huge debts.