The 34-year-old suffered the injury when playing fellow American Andy Roddick in the Kooyong Classic last Thursday.
Although his movement was not at its best in Saturday's match with Briton Tim Henman, Agassi said the prospects were encouraging.
"Today's a good sign, no question" said Agassi, who lost 6-3, 6-7, 7-5 to Henman.
"I plan on playing. But I'll have to see how I pull up tomorrow and take it day by day.
"To be out there playing for two hours was good, but I definitely wasn't getting to balls I usually would. To be at my best is what I am shooting for, but I'll have to get there soon.
An MRI scan on Friday showed the injury to be a micro-tear to a tendon in the upper leg, and Agassi said medical staff had told him he did not risk serious injury by playing on.
"It's better that it's tendon rather than muscle because it's manageable," the four times Australian Open champion said.
"It's not something where they (doctors) feel that I can do something worse to it.
"But I am not here to get through a few matches, I am here to win. I'll be delighted if I am in the mix in the tournament, but I'm not going to feel good until everything's as it should be."
Agassi, seeded eighth for the Australian Open, said he would not be requesting a Tuesday start from tournament organisers.
"It's really not going to make much difference to have an extra day beforehand."
