Sabella, who joined the West Yorkshire side as a player in 1980, is currently out of work having guided Argentina to the World Cup final this summer.
Leeds are yet to replace David Hockaday following his sacking last month and Sabella became the bookmakers' favourite after owner Massimo Cellino confirmed he wanted a "foreign coach, an international coach".
The 59-year-old made just 23 appearances for the Whites before returning to Argentina with Estudiantes in December 1981 but is now surrounded by speculation of an Elland Road return.
"The Leeds situation is intriguing, and I feel I have unfinished business with that club," Sabella told the Argentine media.
Neil Redfearn has been in caretaker charge since Hockaday's dismissal, overseeing a win over Bolton and a draw with Birmingham, but Cellino has ruled him out of the running to take the job permanently.
Cellino told the Yorkshire Evening Post: "I'm thinking about a foreign coach, an international coach who I can work with.
"We need to meet and talk but I think he could be good for us.
"It needs to be the right man, but I want Neil (Redfearn) to be involved with the first team in some way. He knows the young players, the players like him and they respect him. I respect him.
"The academy is his responsibility but I want it to be a team of coaches. He's shown that he knows what he's doing but I can't take him away from the academy completely."