Mr McGrady denied there was a policy shift
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The DUP have welcomed what they interpret as a shift in SDLP policy on the restoration of a Stormont assembly.
On Wednesday, South Down MP Eddie McGrady urged the government to back "the re-establishment of a fully devolved administration".
This would be with "a temporary executive appointed from non-elected members or, indeed, consisting of the NIO ministers themselves", he said.
However, Mr McGrady said the DUP "has got the wrong end of the stick".
The appointment of non-elected members as an alternative way forward has been an SDLP proposal for some time.
However, DUP deputy leader Peter Robinson said Mr McGrady's reference to NIO ministers forming a temporary executive presents "an opportunity for constructive debate" as it falls within the DUP's notion of phased devolution.
Mr Robinson said "it is important that alternative interim arrangements are considered".
In response, Mr McGrady insisted he was not in favour of Northern Ireland Office ministers forming a temporary executive, but was simply suggesting that the parties' different suggestions for interim forms of government should be discussed.
"It is however, interesting to note that Peter Robinson believes that it is in no ones interests for the 'current form' direct rule to continue," said the South Down MP.
"Perhaps he will agree then that keeping these unaccountable direct rule ministers in their positions in any form is pointless."
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