The centre-half, who was close to joining Bristol City in January, has been sidelined for three months with a debilitating virus but has stepped up his training over the last fortnight.
McFadzean has now been pencilled in to play 90 minutes against Hastings United in the Sussex Senior Cup next week.
Town boss Richie Barker told the club website: "Kyle played for 90 minutes on Tuesday in a closed-doors game and came through fine.
"He has been stepping up his work in the last few days and will hopefully get another good 90 minutes under his belt next week in the county cup.
"It would be a boost if Kyle was fit for the run-in but we have to be careful and not get carried away.
"He couldn't do anything when he was out - no gym work, nothing - which is probably the longest period of inactivity he's had in his life, never mind his football career.
"But it's certainly a step forward for him."