The Toffees boss has admitted that he is an admirer of the Republic of Ireland international but said that no bid had been made for the midfielder
Having already signed Arouna Kone, Antolin Alcaraz and Joel Robles from Wigan, Everton have been widely linked with McCarthy, who was brought to the north-west club by former Latics boss Martinez in 2009.
However, while admitting that he had "huge admiration" for the 22-year-old, the Everton boss said that a bid had not been made for the player.
"There has been no bid made," he told the club's official website. "I think it's quite easy to understand that James is a player I signed at a young age and I've got huge admiration for him, so it doesn't take anyone [much] to create a little bit of a story. But there has been no bid."
Championship side Wigan are keen to keep McCarthy at the DW Stadium but may find it difficult with Newcastle United also entering the race for the player's signature.
According to the Daily Mail, the Magpies are now lining up the former Hamilton Academical player as a replacement for Yohann Cabaye and are set to offer a fee of £8 million (€9.3million).
A former PFA Scottish Young Player of the Year, James McCarthy joined Wigan in July 2009 from Scottish outfit Hamilton Academical.