The YEP has learnt that Gordon Brown will chair a specially-convened cabinet meeting at an undisclosed location in the city on Friday.
Ministers are likely to later fan out across West Yorkshire, to meet members of the public and carry out a series of high profile visits to major companies to learn how the region's businesses are coping with the deepening recession.
It will be only the second time the UK cabinet has met outside London since 1921, when Lloyd George's senior ministers met in Inverness.
Gordon Brown announced earlier this year plans to hold more meetings outside the capital and in September took his top team to Birmingham.
Before that Cabinet session the Government held a meet and greet with around 250 people.
Afterwards there was an economic event attended by business leaders. The cost of the day's activities came to £61,920.
Next week's meeting will be the first session of the cabinet following the publication of the pre-Budget report on Monday.
The PBR is expected to include dramatic tax cuts and public spending increases, which the Government hopes will kick-start the ailing economy.
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The YEP understands that one of the major reasons for picking Leeds is due to fears over the impact on the city region of future job losses at Halifax Bank of Scotland and other financial services firms.
A Westminster source said: "Some of the cabinet probably think that Leeds is all about mines and mills still but this is a modern city with a growth rate of 8 per cent, even with the credit crunch.
"Hopefully they will stay long enough to see the afternoon rush hour.
"Leeds has massive transport problems and perhaps if the cabinet experiences some of that, it will help them put together some transport solutions."
The cabinet includes three West Yorkshire MPs: Environment Secretary Hilary Benn (Leeds Central), Schools Secretary Ed Balls (Normanton) and Chief Secretary to the Treasury Yvette Cooper (Pontefract & Castleford).