Skipper Pat Cummins had earlier ruled out Green from bowling in the Test should he play, but McDonald said he has made significant progress.
Dashing all-rounder Cameron Green is making a quick recovery from his index finger injury and has an "outside chance" of making it into Australia's playing eleven for the opening Test against India starting in Nagpur on February 9. (More Cricket News)
The 23-year-old seam bowling all-rounder, who is recovering from surgery on his index finger in his right hand, had a bowl at the nets in Alur.
"We haven't put a clear line through him on the team sheet. So, I wouldn't say he was in discomfort when he was bowling," Andrew McDonald told reporters here on the sidelines of their four-day training camp.
However, there are still some concerns when he is batting, admitted the head coach.
"I would say one of the deliveries jarred the bottom of the bat and that can create discomfort for anyone, but there is a little bit of awareness around that finger. He has made some significant steps forward in the last couple of days, probably to my surprise.
"So, there is still an outside chance, everything going well, he might be on the team sheet," McDonald kept the options open.
Skipper Pat Cummins had earlier ruled out Green from bowling in the Test should he play, but McDonald said he has made significant progress.
Green's inclusion would provide Australia with an opportunity to include an extra specialist spinner in their bid to win their first Border-Gavaskar Trophy in India since 2004.
McDonald further said their explosive opener David Warner is fully "recharged" and looking forward to make amends for his poor runs in some of the previous tours in the upcoming Test series.
The 36-year-old, who has a poor record of averaging 24.25 in eights Tests in India, had complained of exhaustion and said he would have preferred the night off from the Cricket Australia awards to recover from a busy home summer.
"I haven't noticed any fatigue in David Warner since I got here," McDonald said.
"I would probably dispel that as a bit of a myth. He has had a couple of days off... he has been there (at training) for one of the two days, and he is not there today."
"We are managing each individual coming in around their specific preparation and where they have been and there is no doubt it was a demanding summer into BBL, and it creates a challenge back into Test match cricket.
"But we feel the preparation we have him on he will be recharged and ready to go. It has been well-documented he hasn't had the series that he would like. It's always challenging.
"I think the way he is applying himself in his downtime to really land on a method to take on the Indian spinners and also the quicks and to have a successful tour, I think you will see him fully invigorated and invested and fully charged for the challenge ahead."