Two-tour Lion Williams has been sidelined since November after dislocating his shoulder in Wales' narrow loss to South Africa.
He had been given an initial recovery time of 10-11 weeks meaning he would miss the Friday night game with England and be a doubt for the trip to Murrayfield the following weekend.
But the Ospreys have revealed the Lion is ahead of schedule on his road to recovery and could be in line to return against Toulon in the Heineken Cup on January 22.
"Shane is five weeks post-op and is coming along well," said Ospreys' physiotherapist Chris Towers.
"He is working hard and doing two or three sessions per day, so we are rehabbing him as hard as we can. He's making good progress and we aren't ruling out a possible return for the Toulon game, which is in line with our original best-case scenario, although he still has some way to go yet."
The wing wizard who has scored 51 tries in 75 games for Wales has toured both South Africa and New Zealand with the Lions scoring eight tries in 13 games.