The 23-year-old has struggled to hold down a regular starting berth at Old Trafford since his arrival from Swansea City and he will be hoping for more first-team opportunities at Elland Road now.
According to Fabrizio Romano, Leeds are set to pay a fee of around €28 million for the highly-rated winger and the player has already agreed on personal terms with the Premier League club.
James is set to undergo his medical with Leeds tomorrow morning and the official announcement will be sorted after that.
The Welsh international barely had the opportunity to establish himself as a first-team regular under Ole Gunnar Solskjaer and a move away from Old Trafford is ideal for him at this stage of his career.
The 23-year-old needs to play regularly in order to fulfil his potential and a top-class coach like Marcelo Bielsa could certainly help him in that regard.
The Argentine manager has done well to nurture the young clear at Leeds since taking over and he could have a transformative effect on Daniel James as well.
Furthermore, Bielsa wanted to sign James before he joined Manchester United and therefore it is clear that he admires the 23-year-old winger. Also, the fact that Leeds are paying €28 million for the player shows that they have faith in his ability.
It is fair to assume that Bielsa will give him the necessary opportunities to showcase his talent at Elland Road and it will be interesting to see if the player can settle in quickly and make an immediate impact this season.