 Out of contract, it was initially uncertain whether he would return to the club, but following negotiations he signed a new two-year contract with Sheffield United at the end of July 2012 whilst in Malta on their pre-season tour.On 14 August 2013 McDonald moved to fellow League One club Wolverhampton Wanderers, signing a three-year contract for an undisclosed fee (reported to be £750,000).After making his Wolves debut as a substitute in a 2–1 win at Bristol City on 17 August 2013, he scored his first goal two weeks later in a 3–1 win at Port Vale on 31 August.