The French striker, who has not played since the home defeat to Blackburn Rovers back in early December, has spent the last ten days in full training and manager Steve Bruce said he is looking as good as he did when he first arrived at St. Andrews from Bordeaux last year.
Bruce told Sky Sports News: "He's trained for the last ten to twelve days now and he hasn't had any reaction his knee.
"He looks as good as he did when he arrived last year."
Dugarry was sent-off in the Blackburn game which resulted in a one game ban and was later charged by the FA with misconduct during the game after an altercation with Rovers centre-back Craig Short. That charge resulted in a three game ban which has been served during his time out injured.