The midfielder is seven games away from triggering a new £10m bonus for Tottenham.
Alli is currently recovering from a setback suffered after surgery and Dyche said: said: “It went shoot, that was it… These stitches are more like an anchor inside his body and one of them popped so the specialist said we can go in again but we don't want to, so therefore it is time [that is needed for his recovery]. It was incredibly frustrating.
“Just from striking a ball - and just to be clear he had probably struck 100 balls, not on that day, but he was clear that he was feeling great, so that is why it is so frustrating for him.
“It was a real blow for him. He has dealt with that fantastically well because he had a lot on his plate, he is coming out of that period and getting back on the grass, which is good for him and good for us. But he is still a bit away yet, he is nowhere near training with us yet but he is beginning to work with the sports science people.
“After all he has been through it is an incredibly frustrating thing because he was literally training with us, warming up with us, doing the early drills and then he got injured. He had done all of the fitness work, got back on the pitch with us, a nothing situation, striking the ball and that's it and then he is knocked back to square one.
“That is very frustrating for a player, especially for him and his recent history of getting well again. He has dealt with it very well."
On renegotiating the bonus payment, Dyche said: “That will be sorted out in due course or whatever needs to be approached with his deal. He is not ready yet.
“When he is fit and well, I am sure Kev [Thelwell, director of football], rather than myself, will go to Tottenham and say: 'Right, how can we make this work for everyone?' It has never been at that stage, so we have to wait for it to get to that stage."