The 26-year-old, who is understood to have moved north from Watford for around £300,000, spent two impressive loan spells at Hillsborough last season.
McGugan’s return is likely to be a popular move with supporters still reeling from the news this week that the Owls will introduce a new match-day pricing structure next season that will see prices for Category A* fixtures peak at £52 for non-members.
Ticket prices will be split into eight categories, with the opening day visit of Bristol City graded as B – meaning adults will pay between £39 and £46. Members receive a £5 discount on those prices.
Neil Redfearn, meanwhile, yesterday left Leeds United claiming the club had made his position “untenable”.
The 50-year-old, a popular figure with supporters, was removed as head coach earlier this summer following criticism by owner Massimo Cellino and later succeeded by Uwe Rosler.
He had, though, been expected to return to his previous role as Academy manager.
A statement from Redfearn, who has overseen the development of a hugely talented group of youngsters at Elland Road, revealed he had left without agreeing a settlement. The matter could now become the subject of legal action.
Dame N’Doye is edging closer to an exit from Hull City following two bids from Turkish club Besiktas, while FA Trophy holders North Ferriby United – owned by newly confirmed chairpersons Eman and Steve Forster – are no longer up for sale.