The Whites have had representatives in Spain today negotiating for a deal to bring the 22-capped Spanish international to Elland Road.
A medical is yet to take place but the clubs have now reached agreement over the financial terms of the deal and Leeds are close to settling personal details with the player.
The 29-year-old is regarded as a player whose versatility and workrate would fit the mould for Marcelo Bielsa and whose quality and experience would suit Premier League football.
News broke earlier today that newly promoted Leeds were in Spain to negotiate for the forward and a number of media outlets in the country were reporting this evening that a €30m agreement had been reached, verbally, pending a medical and the drawing up of contracts.
Valencia confirmed the deal tonight in a statement that read: "Valencia CF have reached a preliminary agreement with Leeds United FC this Tuesday for the transfer of footballer Rodrigo Moreno, at the expense of completing all the documentation and other formalities and passing the mandatory medical examination.
"Valencia CF want to thank him for his commitment and effort over the last six seasons - in which he has played a total of 220 games, scored 59 goals, and helped to win a Cup title. Valencia CF wish him all the best in this new stage of his sports career."
Leeds are yet to comment on the move.
While Brentford’s Ollie Watkins has remained an option and a second bid for Ryan Kent has been considered, Rodrigo has emerged as a top target and will become the club’s record signing if they get the deal over the line. Leeds' previous record buy was Rio Ferdinand, for £18m.
Rodrigo, who was born in Rio de Janeiro, Brazil, but has 22 caps and eight goals for Spain, played 17 Premier League games for Bolton Wanderers in a loan spell in 2010/11, at the age of 19. He began his career at Real Madrid before a spell with Benfica and joined Valencia in 2014 for €30 million.
Last season he scored just seven times in 34 games but it was a difficult campaign on and off the pitch for Los Che, who have had to sell some of their best players.
Leeds still want to add centre-half Robin Koch to their ranks in the next week or so and have their sights on a third first-team addition, along with Under-23s prospect Sam Greenwood from Arsenal who is now very close to a deal.