Jeter had surgery after fracturing his left ankle in the American League Championship Series against the Tigers, and was in a non-weight-bearing cast for approximately six weeks following the Oct. 20 procedure.
"He's doing fine," Cashman said. "All the boots are off. He's allowed to walk around now in shoes and stuff, but he's not doing any running. He's at the complex and they have an underwater treadmill, so he's doing some walking underwater.
"Sometime in mid-to-late January, he'll be cleared for some baseball activities; hitting and fielding. He won't be doing any running until the very back end of this. That's the plan so far, and he's doing well."
The prognosis given by the Yankees at the time of the surgery said that the expected recovery time would be four to five months.
Jeter said recently that he expects to be in the Yankees' Opening Day lineup, and Cashman said that the organization expects Jeter to be playing shortstop against the Red Sox at Yankee Stadium on April 1.
Cashman said that Jeter will be continuing to return from the injury as Spring Training begins, joining a group of rehabbing veterans that also includes ace CC Sabathia (left elbow surgery) and closer Mariano Rivera (right knee surgery).
"[Jeter] was always expected to be behind in Spring Training, and he's always been expected to be 100 percent ready to go as our starting shortstop when the regular season starts," Cashman said. "CC and him, and probably Mo, they'll start slowly and finish strong."
Jeter, who turns 39 in June, batted .316 with 15 home runs and 58 RBIs in 159 games for the Yankees in 2012, leading the Major Leagues with 216 hits.