However, Cellino is eager for the 49-year-old to continue in his official role as academy coach at Elland Road.
"Neil's very busy with the academy and I need him in that job," the Italian told the Yorkshire Evening Post. "He's an outstanding coach, a guy who knows how good teams should play, but it would do too much damage to the academy if he stays as [head] coach.
"I'm thinking about a foreign coach, an international coach who I can work with. We need to meet and talk but I think he could be good for us."
Refearn is expected to remain in charge of Leeds for their trip to Bournemouth in the Championship on Tuesday.