The UK government is "not at all considering" a separate visa system for Scotland to attract migrant workers, the BBC has reported.
The SNP have been looking for a change in the law to enable Holyrood to create its own immigration visa system separate to the rest of the UK.
Following discussion of the topic at a Westminster debate earlier this week, Scottish Labour MP John Grady indicated home secretary Yvette Cooper was "absolutely determined" to attract "talented people" to Scotland.
However, a UK government source told the BBC: "We are not at all considering a Scottish visa system."
It is understood a separate Scottish system could use different tax codes to prevent people using the system to enter Scotland and then moving to work south of the border.
A Scottish government proposal to pilot a similar was previously blocked by the Conservative administration.
Now, SNP MP Stephen Gethins is today set to table a bill proposing an amendment to the Scotland Act 1998 to allow the Scottish government to set up its own visa system.
He claimed the scheme would enable Holyrood to "tackle the Brexit-born staff shortages that have inflicted pain and hardship upon our NHS and Scottish businesses".
Meanwhile, sources told The Times that Grady "panicked" in the chamber and misrepresented the UK government's position.
But Scottish Labour's manifesto claimed the party wanted “migration and skills policies [that] work for every part of the UK”.
Aberdeen & Grampian Chamber of Commerce collaborated on Scotland’s Urban AGE 2022 report calling on businesses and government to work together to ensure Aberdeen, Glasgow and Edinburgh overcome challenges faced.
Among a list of recommendations, it suggested "immigration policy is devolved to ensure our cities and regions have access to the workforce
they need to prosper".
It added: "Scotland needs a Net Zero Jobs Strategy to ensure that
we have the requisite skills and labour force to deliver on our climate pledges."