Nothing official is being done this weekend, Favre isn't meeting with the Packers or the commissioner, and he isn't flying up to Green Bay either. But the sources close to everyone involved keep talking.
ESPN's Ed Werner is down in Hattiesburg and his sources say Favre will probably reject the $20 million offer to retire because he'd rather play football. This doesn't surprise me because I've never thought, and I've never read or heard anyone say it, that Favre was returning just for the money.
Same link as above, it's also rumored that NFL commissioner Roger Goodell will reinstate Favre on Monday. Then Favre would have to report for the afternoon practice on Tuesday.
GM Ted Thompson could force through a trade, take the best offer he's received, if he's even received an offer, to make sure Favre doesn't come anywhere near camp. He could release him, but that is still unlikely. Otherwise he'll welcome Favre back and presumably he'll let him hold a clip board and not participate in practice. I think that is the most likely scenario. He'll be in camp, but not participating while Thompson works on a trade.
Thompson had the support of most fans at first, but he's done a lot wrong over the past couple weeks. He's lost some, if not a lot of fans, and Favre certainly has more support than he did a couple weeks ago. This could turn real ugly for Thompson as fans watch Favre sit on the sideline while he loses his starting job to Aaron Rodgers after no quarterback competition. He either has to trade/release Favre before he shows up, or give Favre a legitimate opportunity to win the starting job, but I can't imagine he'll even consider letting Favre start again.