Barton played a crucial role in helping Burnley earn promotion to the Premier League this season but with his contract at Turf Moor set to expire in a couple of months, the midfielder is said to be currently eyeing a move away from Lancashire with Scottish side Rangers interested in his services.
Clarets boss Dyche is aware of Rangers' approach for Barton and has gone on to back the midfielder to do what is best for him even though he has a one-year deal on the table to remain with Burnley and make a Premier League return.
He told Sky Sports' Goals on Sunday: "Fair play to Rangers, it shows the clout they have, because if they're talking to him he's not cheap, It shows their intentions if they see it as viable, they must be backed well.
"We've been open with our conversations with him and his advisor, but he's still got his chance to look around and that's what players do nowadays. They' re open-minded to what's out there.
"He knows where we stand on it, we do actually speak to these people. He's got some deep thoughts on what he thinks is correct. I've worked with him, not against him, and one of the first things people said was: 'How are you going to handle him?'
"I've said all along, he's a man, not a boy. His contract runs out this summer. He knows our position on it and he's got his chance to look around and do what he needs to do."