Barton signed a one-year deal back in August, following his release from QPR, and has since made 35 appearances, scoring twice, as Burnley have climbed into automatic promotion contention.
The former Manchester City and Newcastle United man has previously explained that his Clarets future isn't dependent on promotion back to the Premier League http://www.burnleyexpress.net/sport/burnley-fc/latest-news/barton-happy-to-stay-at-burnley-beyond-the-summer-1-7692217 and that he and Dyche are on the same page when it comes to a new deal http://www.burnleyexpress.net/sport/burnley-fc/latest-news/barton-in-tandem-with-boss-over-new-contract-1-7742834 .
And Dyche explained the latest on the situation: "He's a good player, he's enjoying what he does here.
"He's been good for us and it's been good for him. It's a win-win at the moment.
"He's still thirsty for more and we'll look at that when we need to.
"He's in such a good place with us, there's a mutual respect that's quite evident. There's no worries about that.
"He's fine. He's enjoying it, that's where it lives.
"He's playing well, he's affecting the group, the group are having him, he's enjoying them, enjoying the club and what we offer."
Meanwhile, talks are "ongoing" regarding a coaching role for Michael Duff, who is also approaching the end of his current playing contract after 12 years at the club: "We're talking with Duffo about the future of being at the club in a given role.
"It's not the 'old great servant' one, there's more to it than that. He's got all his licences, he's seen a lot of managers, got different things he's picked up and he can offer that back.
"There's more to it than just he's been a great servant. He's ready for us to find something.
"I think he's got an interest in what we can do with him here first. Those conversations are on-going."