HITC Sport understands from sources close to the club that Sheffield Wednesday's move for Lewis McGugan is off with a number of clubs waiting in the wings to sign the midfielder.
The Watford midfielder enjoyed two successful loan spells at Hillsborough last season, making 29 appearances for the Owls and scoring three goals for the club.
Wednesday were thought to be keen on making McGugan's move permanent this summer, but a change of manager at Hillsborough has held up any move.
Former Wednesday boss Stuart Gray had made McGugan one of his top targets this summer, but with Gray axed and replaced by Carlos Carvalhal it put the McGugan move on the backburner
Carvalhal is understood to be keen on signing McGugan after being made aware of the midfielder's talents, but the club's owner is reluctant to sanction a deal.
McGugan, who is currently back training at Watford, faces an uncertain future as he is entering the final year of his contract at Vicarage Road.
A number of Championship clubs are thought to be monitoring the former Nottingham Forest star's situation at Watford now it seems his move to Wednesday is off and are ready to swoop for the goalscoring midfielder.