The Guardian states that O'Leary's relationship with the Villa chairman Doug Ellis has become strained, with the manager upset by the lack of support given by the club he joined in May.
Though Villa remain one of the more financially secure clubs in the Premiership, he was given only a transfer budget of £4m this season.
O’Leary is still regarded as a hero by some United fans and deputy chairman Allan Leighton is thought to accept it was a mistake to sack him 17 months ago.
One possible barrier is the compensation that Leeds would have to pay Villa if he were to move, believed to be in the region of £3m.
Cash-strapped Leeds simply do not have the money to pay for that after the financial catastrophe that still threatens to engulf the club.
Amazingly enough, Leeds are still paying compensation to O’Leary in regular instalments after he was sacked by Peter Ridsdale before the start of last season.
But nothing will a amaze Leeds fans' at the moment!