The Manchester City midfielder missed the Three Lions' first two Nations League fixtures of the summer against Germany and Hungary after a positive COVID-19 test forced him to leave the international camp.
Though he returned to training late last week, the 22-year-old didn’t feature in Saturday night’s goalless draw with Italy.
And addressing the media at Monday’s pre-match press conference, Southgate said he would liaise with the England medical staff ahead of finalising his selection plans for the visit of Hungary.
“We’ve got to chat with our physical performance guys and medical team really,” the England manager revealed.
"Phil’s back into training but there's a reality of how much conditioning he's had over the last three weeks and what our expectation of him could be of him so we'll do that as the day progresses."
Looking ahead to the Molineux clash, the Three Lions boss confirmed that every member of his squad took part in Monday’s session with Foden's City colleagues Jack Grealish, Raheem Sterling, John Stones and Kyle Walker all in contention for selection.
England go into the game bottom of group A3 with just two points from their first three games.
"We have one or two bumps and bruises, and they will be checked after training, but we had everyone on the training pitch so that was definitely a good sign," Southgate added.
"We want to win the game but throughout this period I have different objectives I'm trying to achieve. We have players who are fresh, and the squad is important.
"There's definitely some things we want and need to see.
"We have a different tactical challenge tomorrow and lots of teams are finding things difficult against Hungary - they're a good side.
"This group have been incredible, their mentality, their desire to play for England and work every day on the training pitch to get better we're very fortunate to have a group as dedicated as we have."