BBC Radio Humberside reports that the 21-year-old midfielder will be sent out on loan to get more first team experience.
The talented young Irishman made a real impression in the United side at the start as the season as they challenged at the top of the league.
However since his sending off against Walsall in late September he has only been restricted to a handful of appearances.
Laws claimed last week that he needs to trim his squad before he brings any extra players in, and if he does they are likely to be on loan.
Loan midfielder Peter Till has returned to Birmingham City, while winger Wayne Corden made a loan move to Chester City.
Goalkeeper Adam Capp and striker Michael Rankine have also been released and forward Andy Parton is on loan at Scarborough.
United have only brought two players in so far - the permanent arrival of Macclesfield midfielder Neil MacKenzie and the loan signing of left-back Michael Rose from Yeovil Town.
But they will be boosted by a possible kitty of around £200,000 which they are believed to have earnt from the FA Cup Third Round tie at Manchester City on Saturday.