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The Everton winger is keen to cement his place in the Irish squad ahead of Euro 2016 but has found first-team opportunities hard to come by at Goodison Park, making just one appearance for the club this season.
The 29-year-old former Celtic and Spartak Moscow winger had been linked with a move to Championship sides Leeds and Blackburn, but was said to be holding out for a Premier League club.
However, he has now opted to move to Hillsborough for the remainder of the season.
McGeady has made 76 appearances for the Republic of Ireland since making his debut in July 2004 against Jamaica.
He won four Scottish Premier League titles, two Scottish FA Cups and two Scottish League Cups during six years at Celtic before moving to Spartak Moscow in 2010 for £9.5m.
After scoring 13 goals in 93 appearances for the Russian club, he signed for Everton for an undisclosed fee in January 2014.
By: Kieran O'Daly