The former Barnsley’s frontman’s temporary switch to Bramall Lane was cut short when he was recalled by the south coast club after Sami Hyppia left the Amex Stadium last month.
O’Grady netted his first goal in Brighton colours in their weekend FA Cup win at Brentford after failing to net in his previous 11 appearances.
O’Grady paid tribute after the game to Blades chief Nigel Clough for helping to get his season back on track and making him feel wanted, with Clough waiting for the call to resurrect the move, should Brighton wish to do so.
Clough said: “I have not spoken to Chris (Hughton - Brighton manager), but (managing director) Mal Brannigan has spoken to his counterpart down there.
“Things are progressing, but we are probably in the same situation as we were about six weeks ago when they want to get a striker in before they do anything.
“So we have got to be a bit patient.”