McGregor, 29, has not set foot in the Octagon since his November 2016 victory over Eddie Alvarez, a win that saw him become the promotion's first ever double champion after adding the lightweight title to his featherweight crown.
After that win, the Dubliner announced he would be taking a break from mixed martial arts as he awaited the birth of his first child before his boxing match with Floyd Mayweather Jnr dominated the summer.
McGregor has promised to return to UFC with the possibility of a trilogy fight with Nate Diaz looming large, but he could have other offers on the table.
"I think Conor would be a perfect fit for WWE," McMahon said, speaking at a Leaders in Sports convention at Stamford Bridge. "He certainly has the personality, the athletic ability, the appeal. He speaks his mind, he is very genuine and authentic and he has a hell of a Vince McMahon swagger."
McGregor's mass appeal has allowed him to freely branch out and professional wrestling could be another money-spinning avenue for him to pursue, with rumours of a WWE deal nothing new.
WWE have also made efforts to bring in another household name from the world of UFC in Ronda Rousey, who appeared in an in-ring segment at Wrestlemania 31 alongside Dwayne 'The Rock' Johnson. Rousey has not fought since December 2016, and her future with Dana White's promotion is in doubt following consecutive defeats to Holly Holm and Amanda Nunes.
The former bantamweight champion has done little to dismiss rumours of a switch to WWE with McMahon recently telling TMZ Sports their offer is "absolutely" still on the table.
Rousey and McGregor would join a long list of athletes to mix it up in both MMA and professional wrestling, one that includes the likes of Ken Shamrock, Bobby Lashley, CM Punk and most famously former UFC heavyweight champion Brock Lesnar.