Currently a free agent, McFadden has been linked with Wolves.
Hughton said: "He's been training with us for a good while now since the summer. He's one we're still assessing.
"He's training on the back, of course, of an injury - 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."