Donovan left the Oakwell outfit last week via mutual consent after two and a half years which have seen him fail to impress and has struggled with injuries.
His departure was always going to spark rumours that he would return to Blundell Park.
Asked by Radio Humberside after the game on the situation, Groves dodged the question but admitted he was aware of Donovan leaving the Tykes.
Donovan joined Town in the summer of 1997 from West Brom for a fee of £300,000 and went onto hit 21 goals in his first season, including the winner in the play-off final against Northampton.
The 31-year-old failed to recapture his form in the following three season, hitting only 10 more goals.
In the summer of 2001 he rejected a new contract and moved to Barnsley, believing they had a better chance of reaching the play-offs than Town. That season the Tykes were relegated to Division Two.
Another possible interested party is Rochdale manager Alan Buckley who got te best football out of Donovan in the 97/98 season.