The 27-year-old striker, who is on loan at Oakwell from Sheffield Wednesday, has scored three goals in nine appearances for the Championship strugglers to help them climb out of the relegation zone.
O'Grady, who has one year remaining on his contract at Hillsborough, has said that he will assess his options at the end of the campaign.
"I'll definitely assess it at the end of the season, but the infrastructure in the club, well it can't get any better," he told the Sheffield Star.
"The players couldn't be any more accommodating and the manager [David Flitcroft] is just perfect for me. I'm enjoying it and I'm enjoying my football, which is the most important thing.
"You want to prove that you're a better player than your club believes you are. If I'm not regarded as an important player for the team then you've just got to prove people wrong."
O'Grady's parent club beat Barnsley 2-1 last Saturday.