McGugan was released by Sheffield Wednesday at the start of last season.
Wednesday terminated McGugan's contract 10 months early in August 2017, after the 29-year-old went an entire campaign without featuring for the Owls' first team.
And although he later signed for Northampton Town, McGugan was released after just nine appearances in January of this year.
The Daily Record reports the former England Under-21 international travelled to Scotland on Sunday and played 70 minutes of a bounce game the following day, but couldn't prove his fitness.
It means McGugan will not be joining the former Barnsley winger, Adam Hammill - who is said to have impressed alongside him to earn a three-month contract.
McGugan was initially brought to Sheffield Wednesday on loan by Stuart Gray, whose successor, Carlos Carvalhal, sanctioned a three-year deal in July 2015.
What has happened to the once-popular Sheffield Wednesday midfielder?
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