McFadden is out of contract after his deal with Birmingham expired earlier this summer. The Scotland forward has been out of action with a cruciate ligament injury since last September.
Hughton is now prepared to re-sign the striker as the Birmingham boss is desperate to strengthen his squad.
“He has been training with us for a good while now – since the summer. He’s one we’re still assessing,” said Hughton.
“He’s training on the back of quite a big injury, and the club knew it was going to take him a period of time to recover.
“With that, it’s about making sure he completes his rehab and getting into football work. He’s a player of very, very good ability and he has shown that in the past.”
