Malta international Bogdanovic, 30, signed a two-year deal when he arrived at Bramall Lane from Barnsley on a free transfer last summer.
Blades manager Micky Adams said: "Hibs asked us about Boggy, but he declined and is well within his rights to do so."
Bogdanovic has struggled to hold down a place in the Blades' starting line-up, being restricted to just five starting appearances this season.
Meanwhile, striker Ched Evans has been included in former Blades manager Gary Speed's first Wales squad for the clash with the Republic of Ireland next week.
Source: PA
Source: PA