Fry had earlier stated that Leeds had enquired about the left-sided 24-year-old, but could not afford the former Stockport player.
Rowe has one year left on his current deal at London Road and has turned down Peterborough's offer of a new three-year contract.
"The player and his agent have expressed an interest and they have spoken to (Leeds manager) Brian (McDermott)," Fry told BBC Radio Leeds.
"So there is a willingness for the player to join Leeds, definitely.
"But until a transfer fee and a package can be sorted out then it won't happen and the player's aware of that and if he has to stay with us.
"But there's other clubs in for him as well, even though they are in the south and not up north and the decision will be his at the end of the day.
"We desperately want to get back in the Championship and we'll have a better chance with Tommy Rowe than without him, so we're not that bothered whether we sell him or not to be honest."
Manchester-born Rowe has made over 140 appearances for Peterborough since arriving at the club in July 2009 from Stockport, where he began his career.
- Sports & Recreation
- BBC Radio Leeds
- Tommy Rowe