But Motherwell assistant manager Kenny Black doubts the club could afford to re-signthe forward if he was interested in a return to Fir Park.
Sunderland have not ruled out another short-term contract for the 29-year-old, with Black wary of upsetting Motherwell's squad with the addition of McFadden.
Kenny Black: "It only makes sense if you have the finances to do it.
"James is a top player and an experienced international but I don't know if the finances would allow us to offer him a deal.
"We have a number of players out of contract in the summer and I'd love to be able to tie these guys up for next year.
"We would like to keep everybody but due to financial restraints, or other clubs coming in offering better money, that may not be possible.
"Whether James would even be interested in playing for us, I don't know. I'm led to believe all he is looking for is training facilities.
"It's a similar situation to a few months back when he came to get himself fit and earn a move to Sunderland. He's a local lad and we are happy to have him on board. That's as far as it goes."