Willie Mullins has confirmed that Faugheen will return at the inaugural Dublin Racing Festival at Leopardstown next month as one of his 49 entries for the two-day event.
The 10-year-old was the odds-on favourite for the Ryanair Hurdle at Leopardstown last month but was pulled up with two to jump after dropping away tamely.
Mullins however says the horse will return in the BHP Insurance Irish Champion Hurdle after passing a series of tests and report the 2015 Champion Hurdle hero in good form.
The County Carlow trainer said: "We are as happy as can be expected with him. All his tests have come back fine.
"The next step up is to do a little bit of fast work this week and if he passes that test we will be aiming at the BHP Insurance Irish Champion Hurdle.
"We have been minding him and last week we gave him a slow canter.
"We'll move up a gear this week."
Faugheen could be joined in the race by stablemate Melon at Leopardstown on February 3, though the latter was not put through his paces on Monday morning.
"He was unable to work because he lost a shoe and the blacksmith wasn't here to put a shoe back on," said Mullins.
"He's fine and I'd like to run him in the BHP as well."
The champion trainer has made 49 entries in total for the seven Grade 1 races and the Grade 2 Coral Dublin Chase on Saturday 3 February and Sunday 4 February.
The first Grade 1 race at the Dublin Racing Festival is the Nathaniel Lacy & Partners Solicitors Novice Hurdle and Mullins has 11 horses in the mix, including the unbeaten Getabird, Real Steel and Carter McKay.
The Grade 2 Coral Dublin Chase features eight Mullins-trained horses including Yorkhill, Min and Un De Sceaux.
Footpad is one of three Mullins entries in the Frank Ward Solicitors Arkle Novice Chase and he could be joined in the €100,000 heat by both Demi Sang and Bon Papa.
There are four Grade 1 events on day two with the Unibet Irish Gold Cup attracting no fewer than five Mullins-trained stars. Total Recall heads the quintet which is made up of Bachasson, Djakadam, Killultagh Vic and Acapella Bourgeois.