Canaries manager Chris Hughton revealed on Tuesday that the Championship club had rejected an approach for the Scot last week.
But Whites manager Neil Warnock revealed on Wednesday that Snodgrass has been allowed to leave the training base in Cornwall to discuss terms with another club, who he did not name.
He told leedsunited.com: "Negotiations have been going on for weeks. I was hoping he would have had a change of heart and I can honestly say that in all my time in football, I've never worked as hard in trying to keep a player.
"He was offered the best contract, the captaincy, and we would have built a team around him so I am very disappointed.
"He's made it clear what he wants to do and he's had his head turned. He wants to play in the Premier League. He believes his Scotland international career may be better served in the Premier League, but I'm not so sure."
Warnock added: "The club is in the process of due diligence and there's not a lot concrete we can say to him. He's seen and heard a lot of things over the past few years. But I am still disappointed. Very disappointed. Life moves on though."
Following a friendly win at Celtic on Tuesday night, City boss Hughton said: "We did put a bid in for Snodgrass a week or so ago and that is where we are at.
"He is a player we would like, hence the reason we made the bid, but of course he is a Leeds United player and until we are told otherwise that will be the case.
"I would like to strengthen the squad but it has to be the right player because we have a good squad with good morale and good mentality, as showed last season. It is important that the right player will enhance what we've got and give us the right competition in the right areas."