Fryatt has made just two appearances for the Tigers this season, both in the Capital One Cup, and manager Steve Bruce has been eager to get him a short-term deal to build match sharpness.
Leeds had been interested in the former Leicester player, with boss Brian McDermott present at Hull's midweek cup win over Huddersfield, but the Owls have secured a deal for the 27-year-old.
"Matty needs to go somewhere and play. One game a month in a cup competition is not enough," said Bruce.
"He needs to go and play four, five, six games in the Championship.
"He could do with that and it could do him the world of good."