Leeds shelled out £36 million to sign the 21-year-old in January on a five-and-a-half-year deal.
However, the striker failed to score and registered only one assist in 11 appearances as Leeds suffered relegation to the Championship.
Rutter and Leeds struck a verbal pact in case of relegation, allowing him to explore a loan move away if he could find a willing club to cover his salary.
It seems the stars have aligned as the Bundesliga beckons for the young forward once more.
Leeds defenders Robin Koch and Maximilian Wober were in similar situations when they departed Elland Road for Eintracht Frankfurt and Borussia Monchengladbach on loan this summer.
Rutter’s former club Hoffenheim are in the market to bolster their attack with a player who possesses a unique skill set.
While some traits may not align perfectly with their vision, Rutter’s talent may prove too irresistible to pass up on, making a loan deal a possibility.
However, Freiburg are also in the mix and are determined to secure the French youth international’s signature.
Having already strengthened their attack with the signing of Chukwubuike Adamu from Red Bull Salzburg earlier this summer, Freiburg aim to add further firepower to their squad.
With both Hoffenheim and Freiburg vying for Rutter’s signature, it seems the stage is set for an enthralling battle for a player recently considered one of the most exciting prospects in the Bundesliga.
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