Leeds have launched a study into moving to a new purpose-built stadium or redeveloping their current ground at Elland Road.
The Yorkshire club reached the quarter-finals of the Champions League this season and feel if they are to continue to compete at the top level, then they will have to improve their facilities.
A statement released by the club said: "Leeds Sporting Plc, the parent company of Leeds United Football Club, today announced that due to the ever-increasing demand for its match day facilities, it has commenced a feasibility study into either building a new stadium on a virgin site in Leeds or redeveloping the existing Elland Road site.
"The feasibility study will also cover options for the financing of the development which may include additional sponsorship through the stadium naming rights."
Elland Road currently holds just over 40,000, but the club believe they can only move forward if both the capacity and the off-the-field set-up are dramatically developed.
Peter Ridsdale, chairman of Leeds Sporting Plc, told www.lufc.com: "In order to continue to compete at the top of the Premier League and in Europe, it is important that we have the facilities to maximise match day demand and thereby enhance shareholder value.
"Included in the feasibility study will be a full consultation process involving our shareholders, the city council and our supporter base.
"No final commitment will be made until this consultation process has been completed." PA