McFadden, who made 130 appearances for the Toffees before leaving for Birmingham City in 2008, is currently a free agent after his contract at St Andrews expired in the summer.
Everton have now entered the race for his signature, although Moyes is not overly optimistic about securing his target.
"We have been talking to James and the people behind him for the last few weeks," said Moyes.
"It could happen but I would say it's probably going against that now."
Reports have claimed that McFadden will make a decision on his future by the end of this weekend.