The former Manchester City star's initial six-match deal had expired, but Simpson is keen to keep him as part of the squad.
And he revealed that if the player continues to impress he could secure a more permanent move.
"I have spoken to Ian to ask him to stay with us on a non-contract basis and although he would like a permanent deal he has agreed," Simpson told Dale's official site.
"Partly the reason for not offering him a permanent deal is financial, but I'd also like to check he is fully fit as well."
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