Duff to join coaching staff after retiring from playing
The 38-year-old made his final appearance after 12 seasons with the club as Burnley sealed the Championship title at Charlton Athletic on Saturday.
And, having been offered a coaching role with the club, Duff has decided to call time on his playing career.
Signed by Steve Cotterill from Cheltenham Town for £30,000 and a friendly back at Whaddon Road in 2004, Duff has gone on to make history as the only Claret to three times win promotion to the top flight with the club.
And Dyche said: "He'll be staying with us on the coaching staff.
"We're defining his role at the minute.
"He's been brilliant, an amazing servant to the club.
"When I got here, people were saying he might be on the edge of going down the way instead of up the way, and I take people as I find, and he played virtually every game for me two years ago in the promotion season, and then a lot of games in the Premier League.
"This season, he played the first half, fantastic. 37/38 playing in the Premier League and a promotion-winning team twice in three years? Superb."
Joining Duff out of contract are Joey Barton, who is looking for at least a two-year deal to stay at Turf Moor, Matt Taylor, Michael Gilks and Paul Robinson, and Dyche added: "We’ll chat with them. We have meeting with all the players at the end of every season and talk about it.
"I’ll be chatting with the players accordingly."