Petagna, who has made five first-team appearances for Milan since breaking through in 2012, is also said to be attracting interest from a number of Italian sides including newly-promoted Serie A outfit Cesena.
The 19-year old featured six times in Italy's top-flight during the last campaign, with three of those games played during a brief loan spell at Sampdoria.
Milan plan on sending Petagna on loan again for the forthcoming season in a bid to aid his development, and agent Giusseppe Riso confirmed that Italian-owned Leeds are a potential option.
"Andrea will leave AC Milan on loan to gain experience. There are a few Serie B's teams interested in him, like Crotone, Latina and Perugia while in Serie A Cesena like him," he told calcionews24.com.
"But it is not said that Petagna remains in Italy. I know that (Massimo) Cellino's Leeds like him too, we'll see what AC Milan decide to do."
Leeds have been heavily linked with a number of signings from Italy, with owner Massimo Cellino already completing deals for goalkeeper Marco Silvestri from Chievo, midfielder Tommaso Bianchi from Sassuolo and Catania striker Souleymane Doukara.
Sassuolo defender Jonathan Rossini has been present at the club's pre-season training camp in northern Italy ahead of a proposed loan move to Elland Road, while Sampdoria full-back Gaetano Berardi is another reported target from Serie A.