Ebanks-Blake played a major role in Wolves gaining promotion from the Championship with 25 goals during the 2008-2009 campaign.
But the former Plymouth player struggled to make an impact last season.
He had only a bit-part role once McCarthy decided to operate with record signing Kevin Doyle as the lone striker in a 4-5-1 formation during the second half of the campaign.
Now competition for places has further intensified with the capture of Burnley striker Steven Fletcher for around £6 million this summer.
But McCarthy has seen encouraging signs from Ebanks-Blake during Wolves pre-season programme which has produced a string of victories.
The former Republic of Ireland boss said: "Sylvan has come back this summer looking very sharp and very fit.
"He's working hard at it and he knows that, by his own standards, last season was a poor one.
"He looks like he wants to rectify that, which is great for me.
"It means we've got great competition in there and it's a nice problem for me to have."