Martinez had hoped to bring the striker in on loan until the end of the season with a view to a £4 million permanent signing. However this has been rejected by Celtic, despite hoops boss Tony Mowbray not being McDonald's biggest fan.
The Latics boss has now decided to turn his attention elsewhere, he said: "We did make an approach to Celtic to sign Scott McDonald but it was turned down,
"We had wanted Scott on loan with a view to paying the full transfer in the summer but Celtic turned it down.
"I think if they are to sell Scott McDonald then they will want any transfer fee up front but we are simply not in a position to do that. It is a shame because Scott is a player I really like.
"I tried to get him in the last window but that was also turned down and now I am pursuing other options."
The move for Mcdonald confirms that Martinez is hoping to add a striker to the squad although the Australian is another slight of build forward and it is a big powerful target man that the Latics could really do with.