The 37-year-old joined the club in 2009 on an initial loan from Scunthorpe United, going on to join permanently in 2012.
The shot-stopper spent eight further years at the club, becoming our fourth record appearance holder and our clean sheet holder in the process.
He joins after a spell at Barrow in which he developed from a player into a coach, which has also seen him become a UEFA licensed coach with his own setup called JL Football Coaching.
Lillis, who spent four years at The Bluebirds after leaving Dale, says he is beyond excited to return to the club.
“I’m delighted to be back, it was an easy decision.
“I got asked the question and it didn’t take me long to make my mind up to be honest.
“I’m looking forward to seeing everyone again, I’m proud of my time at Dale and can’t wait to pass on my experience.
“I’ve been back to the Crown Oil Arena a couple of times, this time I’ll be back wearing the badge, all my family are coming, I’m really looking forward to it.”
Lillis’ dad Mark took a similar route, going into coaching and is currently Scunthorpe United’s assistant manager.
Josh will be in the dugout for the first time this Saturday when we face AFC Fylde.
Welcome back, Josh.
