Town have already had a bid rumoured to be in the region of £1 million turned down by Barnsley but David Wagner’s side are said to be readying an improved offer.
According to SkySports, the Terriers are serious about their intentions to bring the Ghanaian international over to West Yorkshire and will be returning with a second bid.
The 25-year-old who joined the Tykes from Barnet last summer still has a year remaining on his contract.
He made 32 Championship appearances in his first season at Oakwell.
Swansea City and Queens Park Rangers are also interested in the defender who can play across all back positions. Reading have also had their bid for the defender rejected by Paul Heckingbottom's side.
Despite featuring for the Black Stars at the Africa Cup of Nations under Avram Grant, Yiadom’s career with the Black Stars remains unknown as he was overlooked by Kwesi Appiah in both his squads for the 2019 Africa Cup of Nations Qualifiers and for the American tour recently.