Despite being loaned to Watford and Burton Albion in the past, the 27-year-old has played his whole career for Leicester.
The midfielder has just made one league start this season and has had little opportunities despite his team’s difficulties in the Premier League.
The Blades are seeking to sign the former England under-21 player, who has since switched allegiance to Bangladesh, on a temporary basis, according to The Star.
He is thought to have been considered early in the transfer window as Blades manager Chris Wilder seeks to increase his team’s size in order to support the team’s bid for promotion.
Although Sydie Peck has filled in well, Choudhury’s signing would provide depth after Oliver Arblaster’s long-term absence.
He also has tremendous experience, having won the Championship title with Leicester the previous season.
Tyler Morton, who has previously excelled in the Championship while on loan at Blackburn Rovers and Hull City, has also been connected to Sheffield United.
The Blades are presently in third place in the Championship standings, behind Leeds United and Burnley.