The Spain international is expected to resume squad training next week and could still feature for Pep Guardiola's side this calendar year
The midfielder picked up a knee injury while away on international duty with Spain back in November, with Bayern initially fearing he would be unavailable for at least the remainder of the calendar year.
A series of tests then revealed that Thiago would be out of action for an estimated four weeks, with the 24-year-old now set to resume training.
"I am feeling very well," the former Barcelona star told reporters.
"My recovery is going perfect. I hope to be able to resume squad training next week."
Thiago missed Bundesliga clashes with Schalke and Hertha Berlin, as well as the Champions League victory over Olympiacos.
He will not be part of the squad for this weekend's match against Borussia Monchengladbach, but could make his comeback in either the trip to Dinamo Zagreb or the home encounter with Ingolstadt on December 12.