The move in 2006 saw Leeds have made a formal complaint to the Football League over three alleged illegal approaches by Chelsea. The league has referred the complaint to the Football Association as it involves a Premier League club.
Related ArticlesMalouda clears the airGreaves plays to new crowdMan City to demand £7m for Daniel Sturridge'It's all about passion'Malouda undermines Ancelotti's unityAncelotti unmoved by shaky performancesLeeds chairman Ken Bates claimed the Blues signed youngsters Michael Woods and Taiwo after making illegal approaches and that his former club failed in an attempts to sign a third teenager, Danny Rose.
The feud was eventually settled out of court and ended with Leeds accepting £5 million in compensation from Chelsea and Bates withdrew his complaints.
Chelsea's youth policy has been surrounded by controversy and last year FIFA imposed a transfer ban - subsequently lifted - on the club over their recruitment of Gael Kakuta from French side Lens.
Leeds-born Taiwo, 19, has failed to make a single senior appearance for Chelsea and was sent out on loan at Port Vale and went on trial at the Major League Soccer club Seattle Sounders last year before heading to Cumbria.
He has spent this season on loan at League One side Carlisle and Brunton Park officials say they expect to finalise terms on a permanent deal before this weekend's visit of Millwall.
"We have been talking to Chelsea on and off over the course of the last month, and we have reached an agreement with them about the player,"
Carlisle co-owner and chief executive John Nixon said. "This one is taking slightly longer than normal because we want to make the deal a permanent one, rather than just a further loan.
"The clubs have agreed terms, and it is now a case of finalising the remaining details with the player and his representatives.
"We expect to have something concluded during the early part of this week."
Woods, who is still on Chelsea's books, and Taiwo, were nurtured at the Leeds's Thorp Arch academy that has produced Paul Robinson, Alan Smith, Jonathan Woodgate, Harry Kewell, James Milner and Aaron Lennon.
York-born Woods, who is the nephew of Grimsby manager Neil Woods, has made two appearances for Chelsea in the FA Cup although he has been confined to reserve team football for the last three years.
Meanwhile, Carlisle have lost the services of Adam Clayton for the next fortnight after the midfielder returned to Manchester City to be assessed by Eastlands manager Roberto Mancini.
"There is a new management team in place down there and they have told us that they would like to keep hold of him for two weeks so that they can have a closer look at him," Carlisle manager Greg Abbott said.
"We will continue to monitor Adam ourselves as he works there with them. We will be able to discuss that situation further once Manchester City have completed their assessment of the player."
Former Stoke and Portsmouth striker Vincent Pericard, who is coming to the end of his three-month deal at English football's North-West outpost, will make a decision on staying at Carlisle before Saturday's match with Millwall.