The influential front rower is yet to feature this season because of an ankle injury suffered at the Ospreys in mid-May.
Dee, who had fought back into the Wales fold before the blow, was nearing a return in the first block of the United Rugby Championship but suffered a setback.
However, the 30-year-old from Newbridge is now back in full training and that leaves the management team with a call to make for Kingston Park.
The Dragons could either bring Dee back to boost the bid for the knockout stages in a side that is likely to feature plenty of inexperience or they could hold him back for the matchday squad in the vital Boxing Day derby against Cardiff at a packed Rodney Parade.
“We are very hopeful that he will be back soon. This is his first week back with us fully and he has trained really well,” said interim head coach Filo Tiatia.
“Sometimes you have to pull him back a little bit! He goes a little bit higher level than the other players and they have to warn him and bring him down!
“He has been really good and is an exceptional leader within the group, so it’s good that he is back in training. Elliot is a top-quality man.”
The Dragons have missed Dee badly despite the fine early season form of Brodie Coghlan, who has started all seven fixtures in the URC.
Coghlan was given a breather for the Challenge Cup opener when stalwart James Benjamin started only to limp off early in the second half with a knee injury.
That led to an opportunity for 21-year-old Sam Scarfe off the bench for his first outing of the campaign while Oli Burrows could come into contention for Newcastle.
The 22-year-old arrived from Exeter in the summer and has, like Scarfe, developed with Super Rygbi Cymru action and in the Dragons’ autumn development fixtures against the Scarlets and Ospreys.
Burrows made three appearances as a replacement in the first block of the URC and was scheduled to get a first start at Connacht only to be a late withdrawal due to a migraine.
If Dee doesn’t feature against the Falcons then the management are unlikely to have any qualms about bringing him straight into the matchday squad to face Cardiff given that he is an experienced operator who has won 51 caps.
The Dragons have put themselves under pressure in the bid for the knockout stages of the Challenge Cup after failing to take their chances against Montpellier in round one.
The 18-14 defeat in Newport means that they realistically need to leave Newcastle with something to show for their efforts if they are to go into January with hope of making the last 16.
They host Pau and then face an extremely tough trip to Johannesburg to face the Lions, with their clash with the Falcons, on paper, the more winnable away fixture.
However, Steve Diamond’s side are a tougher side this season after a miserable 2023/24 and head into Sunday’s game after winning home Premiership games against Exeter and Saracens.
They failed to leave Pau with anything to show for their spirited effort after scoring three tries and conceding with the last play to have their losing bonus taken off them.
The other Pool Two games are on Saturday when Montpellier aim to back up their Rodney Parade triumph by beating the Ospreys in France.
The Welsh side, thanks to a maximum haul against the Lions, are likely to take a second string ahead of their home URC derby with the Scarlets a week on Saturday. The South Africans host Pau and will hunt a five-pointer.
