Owner Rich Ricci hopes Faugheen will return to action in the BHP Insurances Irish Champion Hurdle at Leopardstown on 29 January.
The eight-year-old has not been seen since winning the Leopardstown feature last season, with Willie Mullins' charge subsequently suffering an injury that ruled him out of defending his Champion Hurdle crown at Cheltenham.
"He's going well, I'd be hopeful of the Irish Champion," Ricci told At The Races.
"He's there or thereabouts, I don't want people to worry.
"It's just been niggles, he got a stone bruise and then it got inflamed. It's very stop-start.
"He's working everyday, he's riding everyday, he's close. We've had a good run for two weeks with him now and I hope we can keep that going.
"I'm hoping we see him on the 29th, and I'm hopeful that we will."
