But Nugent is not yet ready to make a long-term commitment to the Turf Moor club and wants to wait until the summer before considering a permanent switch.
The former Preston and Bury man never shone on the south coast after his £6million signing but has made more of an impact following his return to the North West.
New Burnley boss Laws confirmed that discussions are ongoing at present, but that reaching an agreement which suits all parties is proving problematic.
Laws said: "He wants to stay here for the rest of the season.
"He wants to leave everything about his future until the end of the season and concentrate on playing.
"We are trying to talk to Portsmouth to sort out some kind of deal but that is taking its time at the moment."
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