Reid has spoken to Pennant and the youngster is said to be looking forward to joining The Whites.
The loan deal that sees him arrive at Elland Road was not possible until the Premier League relaxed the rules on loans between Premiership clubs this season.
England U-21's: Matt Murray, Stuart Parnaby, Paul Konchesky, Jermaine Jenas, Peter Clarke, Glen Johnson, Jermaine Pennant, David Prutton, Francis Jeffers, Jermain Defoe, Gareth Barry.