Traore, per the report, is keen to leave Molineux this summer, and he has been followed by the Whites since December of 2020.
Should Leeds move for Traore?
He is valued at £27m by Transfermarkt but he endured a difficult campaign last season, scoring just twice in 37 games, while he also laid on three assists.
Wolves finished last season in 13th, while Leeds finished ninth, 14 points ahead of the Molineux club, but Hatfield is unsure if a move to the Whites is a step up.
He said: “It would be a little bit of a sideways step in terms of the position the clubs are both in. Leeds obviously had a great season, having come up from the Championship and really impressed.”