The young Scotland Under-21 international striker will remain on loan at Bloomfield for a thrid and final month.
Lynch has also hinted that he see's his future away from Deepdale.
"I will be looking for another club in the summer," he told the Blackpool official website.
"Preston have bought a couple of strikers in and it looks as though I am out of favour there.
"I am looking to impress here and to be honest I've not thought too much about my long term future.
"I just want to do as well as I can for Blackpool and we will see where we go from there."