The Elland Road club endured a wretched few months after slipping into administration in May, but have since emerged with a genuine sense of optimism for the future.

Five straight wins in League One have already wiped out the draconian 15-point penalty imposed by the Football League on the eve of the current season and a victory at Bristol Rovers on Friday night will lift Dennis Wise's side out of the bottom four.

Leeds, who boast an average attendance higher than several Premiership clubs this term, are clearly flourishing and a national newspaper reported over the weekend that Shepherd, who recently sold his 28 per cent share in Newcastle for £37m, was about to launch a takeover bid.

This has since been played down by United chairman Bates who did, however, suggest Shepherd could be interested in a possible investment.

Bates said: "This is inspired speculation because Freddy and I had lunch last week in Newcastle.

"He is not about to swoop in a 'sensational deal' for Leeds and I am not about to sell it either.

"Freddy is a good friend of mine and has been for years. I went up to see him, and we finished up having lunch.

"Inevitably the subject of football came out, and he is still a bit sore about what happened at Newcastle.

"He would like to get back in and I would like an investor, so the two fit in.

"We had lunch and agreed to keep in touch, and that's it. He hasn't made a sensational swoop and talks are not now at an advanced stage.

"It is early discussions that's all, and Leeds United is not for sale," he stressed.

It was unlikely that an outright sale would have been on the agenda anyway due to a clause in the deal that brought United out of administration last month.

Under the terms of the sale to Bates, a large portion of the funds received through a takeover would have to be paid to the club's unsecured creditors and it is understood this remains the case until next summer.

There is little doubt that a feel-good factor has returned to Elland Road and Bates added: "The hard work has now been done, all of the rubbish is out of the way, and the club is back on track.

"The real league table shows we are two points clear at the top, or will be when we get our 15 points back.

"The club is in profit, the gates are back and we have averages higher than Middlesbrough, Wigan, Reading and Fulham.

"The ground is slowly being improved and the team is strong. Why would I want to sell?

"After two years of hard work and three months of absolute hell, we can talk about football.

"Freddy is a wise old man – although he's younger than me – he is experienced and he would be an ideal partner, but it is gossip. I am here for the long haul."