Sir Keir Starmer's government is not considering a Scottish immigration visa system to help attract overseas workers north of the border.
The SNP are seeking a change to the law to allow Holyrood to establish such a scheme.
After the issue was raised at a Westminster debate on Tuesday, Scottish Labour MP John Grady said Starmer's administration was "absolutely determined" to attract "talented people" to Scotland.
But the Home office denied reports the work involved considering a separate Scottish visa.
A Home Office spokesperson told The Herald: “This is not government policy and not something the Home Secretary is considering.”
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A previous proposal from the Scottish government for a pilot scheme which would exempt certain businesses from UK rules on hiring overseas workers was blocked by the former Conservative administration.
SNP MP Stephen Gethins will table a bill on Thursday seeking an amendment to the Scotland Act 1998 to enable the Scottish government to set up a Scottish visa.
He said it would allow Holyrood to "tackle the Brexit-born staff shortages that have inflicted pain and hardship upon our NHS and Scottish businesses".
The Arbroath and Broughty Ferry MP said the social care sector was "crying out for workers" and referenced fruit being left to rot in fields due to shortages of rural workers.
He added: “We stand ready to work with the Labour government to make this happen and the onus is now on them to step up to the plate, but if they refuse then it’s only right that Holyrood is given the power to take action and introduce a unique Scottish visa."
He raised the issue at a Westminster Hall debate on Tuesday.
Scottish Labour MP John Grady replied that Scottish and UK Labour were “absolutely in favour of bringing talented people into Scotland” and that it was a question of "how you do it".
He said he understood Home Secretary Yvette Cooper was "absolutely determined that that takes place".
The Glasgow East MP said the migration advisory committee - an independent public body that advises ministers - was looking at the issue "very carefully".
Immigration is key to offsetting an ageing population and falling birth rate in Scotland.
It was main driver of the country's population growth last year, which rose at a faster rate than at any time since the 1940s.
However, deaths outnumbered births by the highest margin on record.
Scottish Labour's general election manifesto, external pledged to reform the UK migration advisory committee and to ensure migration and skills policies “work for every part of the UK”, while ending “long-term reliance on overseas workers in some parts of the economy”.
In the days leading up to July's vote, Scottish Labour deputy leader Jackie Baillie told the Herald on Sunday, external her party would look at ways to "incentivise" migrants to the UK to settle in Scotland.
Days after the election, Scottish Labour leader Anas Sarwar was asked if he would push the Prime Minister for a distinct immigration system north of the border.
He told BBC Scotland's Sunday Show: “No. We have to have one UK border agency, of course we need one immigration system.”
Mr Sarwar said the two governments could work together to find solutions to “distinct” immigration issues – such as filling labour shortages in some industries.
He also highlighted the Fresh Talent Scheme, introduced by Tony Blair’s Labour government in 2005.
It allowed international students at Scottish universities to continue working in Scotland for up to two years after they graduated, after which they could apply for other visas. The policy was scrapped by the UK government in 2011.
Commenting on the development today that the UK Government is not considering a Scottish visa, the SNP's Scotland and Foreign Affairs spokesperson, Stephen Gethins MP said: "During the election campaign Scottish Labour claimed a Labour government was open to a Scottish visa, but now we know the truth and it's the same old Westminster story - big promises and no delivery.
"This is incredibly embarrassing for Scottish Labour, but it's the Scottish economy and our NHS that will pay the price for this chaos as we continue to face crippling staff shortages thanks to Westminster's hard Brexit and immigration policies.
"The SNP is absolutely clear that we need a Scottish visa to address our demographic challenges and the damage caused by Brexit - it's now up to Scottish Labour MPs to back us in those calls and put Scotland's interests first."
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