The 21-year-old made the loan switch from Vincent Kompany's Clarets to Jong PSV during the January transfer window, looking to earn regular game time.
Egan-Riley has featured seven times in the Eerste Divisie for PSV's youth side, but has failed to provide a goal or an assist from a defensive position just yet.
The centre-back has played a combined total of 483 minutes of second-tier football for Wil Boessen's side, who are struggling in the league this season.
Jong PSV are currently occupying 17th position in the Eerste Divisie standings, sitting just five points ahead of Jong FC Utrecht who are bottom of the division.
According to Eindhovens Dagblad, Egan-Riley's long-term future in the Netherlands is still up in the air as the season approaches its business end.
The report claims that the Dutch giants are yet to decide whether they will pursue a deal for the defender past the conclusion of the 2023-24 term.
It is understood that an option-to-buy clause was inserted in the loan agreement between Burnley and Jong PSV for Egan-Riley, meaning that a transfer could be sorted swiftly in the summer.
However, PSV are said to be unconvinced by the centre-back's performances since joining the club in January, with the youngster failing to 'meet the sporting standard' required of him.
Egan-Riley has seven league matches of the current campaign left to change his loan club's opinion, or he will be back at Turf Moor permanently in the summer.
After managing three appearances for Pep Guardiola's Manchester City during the 2021-22 season, Egan-Riley moved to Burnley on a free transfer in the summer of 2022.
With six appearances under his belt for the Lancashire club, the former England Under-19 international was sent out on loan to Scottish Premiership outfit Hibernian for the second half of the 2022-23 term.
The Clarets currently sit 19th in the Premier League standings, five points behind 17th-placed Luton Town, and it remains to be seen whether Egan-Riley could have a part to play should Burnley be relegated to the Championship for next season.