The 57-year-old sees it as a "compliment" to be linked with Aston Villa.
The Villans are on the search for a new manager following the sacking of Frenchman Remi Garde last week, and The Mail reported that the 57-year-old, along with David Moyes and Nigel Pearson, is among the names being considered by the club's hierarchy for the role.
With Ipswich chasing a playoff spot in the Championship, some managers could be forgiven for believing that speculation over their future represented an unwanted distraction, but McCarthy, who joined the Tractor Boys in 2012, cannot help but feel that such rumours are complimentary for him.
“I view it as a compliment," McCarthy, who previously won promotion with Sunderland and Wolverhampton Wanderers, is quoted as saying by The Express and Star.
"I can’t help but feel it is a compliment when clubs of that ilk think that I am doing a good job as a manager bearing in mind that I have got two similar clubs promoted."
McCarthy's availability certainly hinges on whether or not Ipswich reach the Premier League. As it stands, they are not even in the playoff positions as Town sit two places and five points behind sixth-placed Derby County.
Should they fail, Villa are almost certain to join them in the Championship next season, with 15 points separating from safety in the Premier League.