He said the possibility of giving Holyrood more powers was not “as good an option” as independence.
His comments come ahead of a special SNP congress later this month, where the party will discuss how to proceed with its push for Scottish independence.
The UK government has consistently rejected SNP calls for a second independence referendum, while Labor has said it will not strike a deal with Humza Yousaf’s party after the next general election.
Speaking to the Daily Record newspaper, Mr Hepburn conceded that there was no “simple or straightforward” route to independence.
He was asked about a deal with Labor that would result in a referendum with the option of more powers and independence.
Mr Hepburn said: “That’s something we need to consider.
“We’ve discussed that as a perspective in the past. If there was an opportunity to give the Scottish Parliament additional powers, we certainly supported it.
“Whether it actually worked out as far as we would have otherwise imagined is another question.
“But if that were a possibility, we would have to think about it.”
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In the 2014 referendum, Scots had the option to vote yes or no on the issue of independence.
He also discussed “Devo Max” – the option of significant new powers for Holyrood.
Mr Hepburn said: “It could be better than the situation we’re in right now because it would give us a greater variety of fiscal leverage to deal with some of the challenges we face in the country.”
“But compared to being an independent player on the global stage and being able to dictate our relationships with the rest of Europe, I don’t think that’s such a good option.”
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The MSP for Cumbernauld and Kilsyth was appointed to the newly created role of Secretary for Independence after Mr Yousaf became First Minister.
One of its responsibilities is the publication of prospectus papers aimed at reinforcing the Scottish Government’s aspirations to independence. The last ones were released in October.