Clarets chairman Barry Kilby have already begun talks at least to extend the loan - which ends on January 22 - until the end of the season.
Nugent is not hiding his desire to stay up north.
"I am absolutely loving life here, the smile is back on my face and I'm playing a lot more than I did at Portsmouth," said the one-time England striker.
"I have been given a new lease of life at Burnley, I love the vibe of the club and if the opportunity comes to stay until at least the end of the season, I want to take it. I didn't really feel wanted at Portsmouth and now I feel good about myself again."