The Scottish international has been on trial at the Midlands club after being released by Birmingham City over the summer.
"I hope there are some developments with James McFadden. He has looked fine this week," said McCarthy.
"I want to sign him but I don't know how far we are down that road."
Wolves return to Premier League action on Saturday against Liverpool at Anfield.
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | Liverpool | 12 | 10 | 1 | 1 | 24 | 8 | 16 | 31 |
| 2 | Manchester CityMan City | 12 | 7 | 2 | 3 | 22 | 17 | 5 | 23 |
| 3 | Chelsea | 12 | 6 | 4 | 2 | 23 | 14 | 9 | 22 |
| 4 | Arsenal | 12 | 6 | 4 | 2 | 21 | 12 | 9 | 22 |
| 5 | Brighton & Hove AlbionBrighton | 12 | 6 | 4 | 2 | 21 | 16 | 5 | 22 |
| 6 | Tottenham HotspurSpurs | 12 | 6 | 1 | 5 | 27 | 13 | 14 | 19 |
| 7 | Nottingham ForestNott'm Forest | 12 | 5 | 4 | 3 | 15 | 13 | 2 | 19 |
| 8 | Aston Villa | 12 | 5 | 4 | 3 | 19 | 19 | 0 | 19 |
| 9 | Newcastle UnitedNewcastle | 11 | 5 | 3 | 3 | 13 | 11 | 2 | 18 |
| 10 | Fulham | 12 | 5 | 3 | 4 | 17 | 17 | 0 | 18 |
| 11 | Brentford | 12 | 5 | 2 | 5 | 22 | 22 | 0 | 17 |
| 12 | Manchester UnitedMan Utd | 12 | 4 | 4 | 4 | 13 | 13 | 0 | 16 |
| 13 | Bournemouth | 12 | 4 | 3 | 5 | 16 | 17 | -1 | 15 |
| 14 | West Ham UnitedWest Ham | 11 | 3 | 3 | 5 | 13 | 19 | -6 | 12 |
| 15 | Everton | 12 | 2 | 5 | 5 | 10 | 17 | -7 | 11 |
| 16 | Leicester CityLeicester | 12 | 2 | 4 | 6 | 15 | 23 | -8 | 10 |
| 17 | Wolverhampton WanderersWolves | 12 | 2 | 3 | 7 | 20 | 28 | -8 | 9 |
| 18 | Ipswich TownIpswich | 12 | 1 | 6 | 5 | 13 | 23 | -10 | 9 |
| 19 | Crystal Palace | 12 | 1 | 5 | 6 | 10 | 17 | -7 | 8 |
| 20 | Southampton | 12 | 1 | 1 | 10 | 9 | 24 | -15 | 4 |
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