Skysports.com report that Leeds are in the process of reshaping their squad in a bid to challenge for promotion from the Championship.
Midfielder Montgomery could therefore provide a different dimension to Simon Grayson's plans and may welcome the chance to return to the second tier.
Sheffield United were relegated from the Championship last season and the 29-year-old Paynter, who signed a new three-year contract last summer, might be looking elsewhere.
