The 20-year-old joins on loan until the end of the season, when his Elland Road deal is due to expire.
He is the second locally-sourced Bantams signing in less than 24 hours after goalkeeper Sam Hornby joined from Bradford (Park Avenue). Both could make their debuts at Scunthorpe United in League Two on Saturday.
Stevens is also the second Whites player on loan at Valley Parade this season, and joint interim City manager Mark Trueman was grateful to Leeds for recalling Stevens from Swindon Town and allowing him to join Bryce Hosannah.
“Jordan is someone we have been monitoring closely for a while, now, and we are delighted to have got his signing completed,” he said.
“Leeds United have been great in agreeing to recall him from Swindon and allowing him to join us. At this level, we are confident he will bring a lot to our squad.
“He is a very talented player - with raw pace and a naturally direct edge to his play - and we are looking forward to seeing him in action.”
Gloucester-born Stevens has made six appearances for Leeds’ first team, and appeared 16 times on loan at Swindon in League One during the first half of the season, scoring once.
“I am delighted to be here. It is a very big club and I am looking forward to meeting up with the rest of the lads,” he said.
“I have played in this division before and have picked up a fair bit of experience at Swindon Town this season, so am excited for the challenge.
“As soon as I knew Bradford City were interested I made it known that I wanted to come here. Hopefully, I can kick on and get some more games under my belt.”
Right-back Hosannah is out until February with a hamstring injury.
Meanwhile, Alan Nevison has returned for a third spell at City’s academy.
As head of foundation phase coaching and recruitment he will work closely alongside academy manager Neil Matthews and head of coaching Lewis Nightingale to develop the most talented youngsters across the Bradford district.
Bradford-born Nevison has also worked in Leeds’ academy.