The 25-year-old, who joined Los Blancos in the summer of 2010 but failed to secure regular first team action, will return to Los Azulones for another temporary spell
The 25-year-old joined Madrid from Los Azulones after an impressive 2009-10 campaign, but has never nailed down a place in Jose Mourinho's plans.
He fell out favour with the Blancos coach after a disappointing first season at the Santiago Bernabeu, and was consequently loaned back to Getafe for 2011-12.
Los Azulones lack the financial resources to re-sign Pedro Leon on a permanent basis, but will now have the attacking midfielder at their disposal once more following Madrid's decision to allow him to renew his loan.
Both sides have yet to confirm the transfer, but the move is expected to be made official in the upcoming days.