Middlesbrough are understood to be leading the chase having already made a couple of unsuccessful enquiries for the England Under-21 international.
Moyes: "Vaughany is all right.
"He has had a few problems with his knee but it's settled now. He trained the last few days and will be in the squad on Sunday (against Blackburn).
"It would benefit James to go out on loan. It will benefit him to get some games, that will be valuable to the boy. He has missed a lot of football."