The 31-year-old looked set to return to Nottingham Forest in January but now appears certain to stay at Ipswich Town.
McCarthy's Ipswich Town frustrated Garry Monk's Leeds United at Portman Road.
Pablo Hernandez's inability to influence the game meant Leeds United were left frustrated at Portman Road.
The 24-year-old continues to find first-team football hard to come by with Southampton but he would surely get more opportunities at Ipswich Town.
The Hearts right-back was heavily tipped to join Derby County in January before an injury wrecked his season.
Marley Watkins and Tom Lawrence have both scored for fun from midfield this season. Will Ipswich Town replace the latter with the former?
Brentford are closing in on the signing of Sergi Canos and could also add Wigan Athletic's Max Power to their midfield this month.
The left-back will be a free agent at the end of the season.
Despite friction with supporters, Ipswich Town boss Mick McCarthy remains defiant that he is the right man to take The Tractor Boys forward.
Former Leeds United attacker Noel Hunt, now at Ipswich Town, will feature in the Championship playoffs.