Cobblers boss Keith Curle confirmed he’s been talking to the Preston forward over a potential move to Sixfields.
Nugent returned to Deepdale from Derby last summer but was confined to a bit-part role for the majority of the 2019-20 season.
The Liverpudlian scored just once in 25 appearances as North End finished ninth in the Championship.
Preston manager Alex Neil has given Nugent his permission to leave during the transfer window.
The 35-year-old is keen to continue his playing career and feature week in, week out.
Newly-promoted Northampton are one club Nugent has been talking to.
Should he join the Cobblers then he’d come up against the Blues.
Nugent scored 20 times in 93 appearances during four years at Fratton Park following a £6m move from Preston in 2007 and helped Harry Redknapp’s side win the FA Cup during his maiden campaign.
Curle told the Northampton Chronicle: ‘I spoke to David and I spoke to his representatives and also to Preston.
‘But as you can imagine, a player of his quality has options.
‘Nothing has been discussed with regards to finances, at the moment it’s purely about David sorting out his affairs at his end and then making the choice in terms of where he sees the next stage of his career going.
‘But the pleasing thing is that we’re in there talking to the right people and I think that shows what we’re about – we’re trying to bring the right personnel, the right characters and the right ability sets into the squad.’
Speaking to talkSPORT on Friday, Nugent said conversations with Northampton were positive as he weighs up his options.
He said: ‘I’ve spoken to Keith Curle at Northampton. I had a really good conversation with him.
‘That would a good location for me and Keith told me his plans for the season, but hopefully I’ll have a chat with a few other clubs and then I’ll decide.’