This suggests yet more player sales could be on the way despite the £60m raised from the transfers of Rio Ferdinand, Jonathan Woodgate. Robbie Fowler and Robbie Keane over the last year.
Goalkeeper Paul Robinson Alan Smith, Mark Viduka and Harry Kewell are Leeds' most bankable stars. Robinson is viewed as the long-term successor to David Seaman as England's number one and his availability is bound to spark interest from Arsenal and Manchester United.
Both clubs are looking for new goalkeepers with Seaman still undecided about playing on next season and Fabien Barthez believed to be out of favour at Old Trafford.
United may also be keeping tabs on Kewell, who would be an obvious replacement for Ryan Giggs should the Welsh international complete a rumoured summer move to Internazionale.
Italian clubs have also expressed interest in Viduka, although Spurs may see him as the answer to their striking problems.
The Leeds statement continued: "The board has now identified annualised cost savings of £5m in total. These will be implemented as soon as practicable and will be significant for the next financial year."
Cost-cutting redundancies will involve several members of middle management and nonplaying staff who have enjoyed a range of perks, including 76 company cars.
