The former Blades player and coach held discussions with the League One side during the week as they search for a permanent successor to Danny Wilson, who lost his job last month before caretaker Chris Morgan took charge of their unsuccessful play-off campaign.
But McCall has decided to stay with Motherwell, who he has led to third and second place in the SPL during his two full seasons in charge.
Motherwell gave McCall permission to speak to the Yorkshire side but McCall, who recently signed a two-year contract, has rejected the opportunity to move on.
The 48-year-old has consistently stated his happiness at Fir Park and turned down the chance to speak the likes of Blackburn and Burnley last season.
His decision is a huge boost for Motherwell as they bid to persuade Michael Higdon, James McFadden, Chris Humphrey and Tom Hateley to sign new deals.