Indians manager Terry Francona told MLB Network Radio that Carrasco will be activated Sept. 1 "if all goes well" during his bullpen session Thursday.
Francona added the Indians intend to use Carrasco out of the bullpen for the rest of this season.
Carrasco announced in July he had been diagnosed with leukemia after doctors noted abnormal blood test results when he underwent a physical during spring training.
During the All-Star Game at Progressive Field, Carrasco stood on the field with Francona and four of his Indians teammates between innings as part of the Stand Up to Cancer organization.
Carrasco took his first steps toward returning on Aug. 19 in a rehab appearance at Double-A Akron. He's pitched in three minor league games, allowing one run on two hits with six strikeouts in 3.2 innings.
The Indians are currently locked in a three-way battle with the Oakland Athletics and Tampa Bay Rays, who enter Wednesday all separated by one game, for an American League wild-card spot. They are also 3.5 games behind the Minnesota Twins in the AL Central.
In 12 starts this season, Carrasco has a 4.98 ERA with 79 strikeouts over 65 innings.