Iguodala has missed the Warriors' past six games this postseason with a bruised left knee after sustaining the injury in Game 3 of the Western Conference finals.
Iguodala went through a full personal workout and sprinted for the first time on Saturday, sources told ESPN's Chris Haynes.
When approached after the Warriors defeated the Cleveland Cavaliers 122-103 in Game 2 to take a 2-0 series lead, Iguodala told ESPN, "I aim to play in Game 3, but I've aimed to play in Game 1 and Game 2. We'll just have to see."
The Warriors lead the series 2-0 over Cleveland despite being without the services ofIguodala, who was the 2015 Finals MVP.
Kerr: 'Good chance' Iguodala plays Game 3
Steve Kerr says Andre Iguodala's progress has been good and he will be a game-time decision for Game 3 of the Finals.