The Scottish B international is available on a Bosman transfer, with Coventry, Leicester and Doncaster also rumoured to be interested.
But Championship teams Preston and Burnley appear to be favourites, with Clarets boss Coyle knowing a lot about Kerr following his period as reserve-team boss at Tannadice, and he also knew of him during a short spell at Falkirk.
Kerr has also been linked with Hearts and Aberdeen, but the club would prefer selling to a club outside of the SPL.
Leeds are also linked with £400,000-rated United striker Noel Hunt, 24, who is believed to also be interesting Reading, where his brother Stephen plays, Burnley, Blackpool and Nottingham Forest.
Hunt, keen to play south of the Border, netted 18 times for the Terrors last term and was the subject of an unsuccessful £175,000 bid from Blackpool in the January transfer window.