The 28-year-old French defender has been sidelined since slipping in training at Compton Park, in October.
But he was spotted walking around in trainers at Molineux as he shed his protective boot in preparation for a comeback next year.
It has been estimated that he could return in February and Coady is hopeful he is ahead of schedule.
Coady said: “He is doing fantastic, he really is.
“He works so hard to get himself back fit.
“He works long days and he is now walking.
“I’m not a physio but he looks like he is ahead of schedule.
“His ankle looks brilliant so hopefully, everyone has their fingers crossed that he will be back as soon as possible.”