A plain Python module that uncompresses is inexistant, AFAIK, but it's feasible to build one, given some knowledge:
- the .Z format header specification
- the .Z compression format
Almost all necessary information can be found the unarchiver CompressAlgorithm. Additional info from wikipedia for adaptive LZW and perhaps the compress man page.
Basically, you read the first three bytes (first two are magic bytes) to modify your algorithm, and then start reading and decompressing.
There's a lot of bit fiddling (.Z files begin having 9-bit tokens, up to 16-bit ones and then resetting the symbol table to the initial 256+2 values), which probably you'll deal with doing binary operations (&, <<= etc).