The goalkeeper was ready to join Oldham on a year-long deal and spent last week training with John Sheridan’s side but he is looking for an alternative move following the end of a trial spell at Boundary Park.
Leeds are willing to release the 20-year-old for the whole of next season having signed a third senior goalkeeper with a £500,000 deal for Felix Wiedwald from Werder Bremen last month.
Wiedwald, Rob Green and Marco Silvestri are all abroad on Leeds’ pre-season tour of Austria and vying for places under head coach Thomas Christiansen.
Peacock-Farrell is seen as a future prospect by United and the club extended his contract to 2020 prior to him linking up with Oldham.
The League One club took him to a four-day training camp at the University of Bath and fielded him in a 3-0 friendly win over Salisbury City but have since decided to explore other options.
Read more at: http://www.yorkshireeveningpost.co.uk/sport/football/leeds-united/leeds-united-oldham-turn-down-peacock-farrell-loan-option-1-8654938