However, Tractor Boys manager Mick McCarthy refused to be drawn on the rumours, telling the East Anglian Daily Times that if a deal is close, he will let the press know.
"Unless I said we were doing something with him (Sharp) I wouldn’t comment because he’s Leeds’ player," said McCarthy.
Sharp, 28, has scored just twice in 19 games for Leeds since joining the club on a free transfer from Southampton last summer, and is now down the pecking order at Elland Road.
Whites boss Neil Redfearn has preferred to use the likes of Mirco Antenucci, Souleymane Doukara and Steve Morison in attack, whilst Redfearn also wanted to bring ex-Leeds striker Luciano Becchio back to Elland Road.
That suggests that Sharp could be on the fringes, and should Ipswich pursue a deal for the former Sheffield United man, he could be the second Leeds striker to make the move to Suffolk.
Noel Hunt was frozen out at Elland Road and joined Ipswich in search of first team football, and is now playing a part in their push for promotion, with two goals in the 3-1 win over Millwall on Saturday.
McCarthy may want even more firepower despite also having the likes of David McGoldrick and Daryl Murphy, so the Sharp situation should be interesting in the coming days - despite Redfearn telling the Yorkshire Evening Post that he wants Sharp to stay with the club.