Leeds only tied down the young left-back to a three-year extension today.
But The Yorkshire Evening Post reports that Thomas Christiansen will move the 21-year-old out on loan at some point next week.
If true it would confirm rumours that Leeds are interested in signing a left-back, amid speculation from The Star linking the Whites with Manchester United's Cameron Borthwick-Jackson.
Meanwhile, Swiss outlet RTS have reported that United are keen on free agent Reto Ziegler, also a left-back, and it seems unlikely that both will join.
Gaetano Berardi and Vurnon Anita can fulfill those roles but neither are a natural in that position and it looks like Christiansen and Director of Football Victor Orta are keen on a natural replacement for Charlie Taylor, who joined Burnley this summer.
Denton is yet to make his Championship debut for United and, despite being a promising talent, he needs games and a loan move makes sense.
At his age, another season in the Under-23 side makes little sense for his development.