Lillis has been on loan at Dale since the start of the season, playing 19 times as the Lancashire side have adapted well following promotion to League One.
His loan spell runs out in January, and a return would prompt speculation over the future of current first choice Joe Murphy - whose contract runs out next summer.
"The Rochdale manager Keith Hill is pleased with Josh and wants to keep him for the rest of the season. But I`m not sure I can agree to that at the moment," said Baraclough.
"I will need to have a talk with Josh. If he wants to stay there, then we will certainly have a 24-hour recall on him."