The striker has been sidelined since December 14 with a calf injury but has now been given the green light to make his comeback.
The Argentina international, who has scored 19 goals in 20 appearances this season, has not featured since City’s 6-3 win over Arsenal on December 14.
Agüero has revealed he may play a smart part in City’s fixture against the Championship club on Wednesday but insists he will be fully fit for his side’s Premier League match against Cardiff City on Saturday.
“I'll be ready for action this week,” Aguero told ESPN. “My injury is improving slowly. Recovery´s going very well. I'm back to sprinting on the field and moving the ball around.
“I'll be fully recovered by the Cardiff game and depending on how the week's training goes I may be able to show up for a few minutes on the second leg against Blackburn for the FA Cup."
Aguero is also relishing the prospect of facing Lionel Messi and Barcelona in City’s Champions League knockout tie, which begins at the Etihad Stadium on February 18.
“It's going to be a very nice match against Barcelona,” Aguero said. “It's the best team in the world - so it's going to be tough. We are in good form and we have a great team. It's going to be a duel between equals. The first home match we have to get a good scoreline. We actually have to play these games - but they’ll surely be difficult.
“I spoke to Leo on New Year's and we said that whoever doesn't make the next round of the Champions League will come to the World Cup really hungry. If we make the round past Barcelona it will be an important feat. Winning the Champions League means winning against everyone. We hope we can make it through and keep making history with the club.”