The 25-year-old was on the verge of swapping Paisley for Edinburgh last summer with Easter Road pair Scott Allan and Drey Wright heading to St Mirren as part of the arrangement until the clubs ran out of time to get the deal over the line.
But Hibs have not rekindled their interest in McGrath, who has been linked with both Aberdeen and Birmingham City this month.
Meanwhile, it is understood that Hibs were offered the chance to sign Toby Sibbick in the early part of the transfer window but turned it down, having already landed their first-choice defensive targets.
Rocky Bushiri and Harry Clarke both completed loan deals with the Easter Road side as Shaun Maloney brought in some much-needed reinforcements at the back, with the pair identified as ideal fits for Maloney’s style of play.
Sibbick was repeatedly linked with Hibs as his time at English Championship side Barnsley looked to be petering out but having acquired Clarke on an 18-month arrangement from Arsenal, and Bushiri from Norwich City on a shorter deal until the end of the season with an option to buy in the summer, the Capital club had no interest in the 22-year-old’s services.
As reported by the Evening News earlier this month, the former AFC Wimbledon man was part of a wider list drawn up by the club’s recruitment team ahead of the January transfer window but reports of the Tykes rejecting six-figure offers for Sibbick from Hibs were wide of the mark.