Earlier this week, Wilson insisted another high-earner would have to depart Bramall Lane before he could consider signing McDonald following his arrival on trial.
But, asked what had changed since, Wilson, whose team will play Everton in the League Cup second round, said: “Kevin has bent a little and it’s also down to the owner too.
“Nothing is sorted-out yet and we might be being a little premature but hopefully we’ll be able to get something done. I don’t think he (McCabe) will be making a habit of doing this because there are budgets which, quite rightly, we have to try and adhere too. But there has been movement.”
Wilson, who told The Star that another prospective target – Alex Kruk – has now returned to Germany, confirmed goalkeeper Matt Duke is continuing to train with his squad in the hope of earning a deal.
With further talks scheduled to take place ahead of tomorrow’s League One fixture with Brentford, McDonald could feature against the visitors from Griffin Park.
“Fair play to Kevin,” Wilson added. “He’s shown a commitment to being here because I know he could easily have gone and found himself another club.
“But I think he’s enjoyed himself here, has had a good look at the set-up and decided that he really fancies the challenge of trying to help us get back to where we should be.
“Kevin feels as if he’s got something to offer us and we do as well.”