The 28-year-old defender is available as a free agent this summer after leaving Coventry City.
He has been offered an opportunity to impress by the Addicks, and has made the most of the stage he has been given.
Wood formed part of Charlton's squad at a pre-season training camp in Spain and did enough to convince Powell that he is deserving of a deal.
There are still plenty of loose ends to be tied up, but Charlton are hoping they will soon be in a position to welcome another full-time addition to their ranks.
Powell said in the South London Press: "We're hoping to discuss with his agent a way forward.
"I've been quietly happy with what he's done over the past 10 days."