The defender, who has impressed Barrow since arriving from Stockport in January, was due to return to Edgeley Park after last weekend's clash with Leyton Orient.
"We are very happy to have kept Dave on," Barrow said. "He has done very well for us and he is an important player.
"He wanted to stay here and we wanted him to stay, but you are never sure what will happen with a player on loan.
"Stockport recalled Jon Daly early from his loan spell with us last month, and they are struggling at the moment, but (manager) Sammy McIlroy has been good to us."
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