The 22-year-old sat on the sidelines for over two months with a knee injury earlier in the campaign but has still managed 24 Championship appearances for the Lancashire club, scoring twice.
Since making the switch from local rivals Preston North End on a free transfer in the summer of 2020, Dolan has featured 150 times across all competitions for the one-time Premier League champions, finding the net on 18 occasions.
The Englishman played a starring role in his side's most-recent win, bagging a first-half brace during the 3-1 victory over Steven Schumacher's Stoke City on February 10.
According to Football League World, it is likely that Luton will rejoin the race for Dolan's services ahead of the 2024-25 season.
It was reported that the Hatters were planning a last-gasp swoop for the attacker during the January transfer window, although a deal did not materialise.
There are supposedly a number of unnamed Championship clubs who are monitoring Dolan's situation as the season reaches its dramatic conclusion in May.
The former England Under-20 international has entered the final six months of his contract at Ewood Park, meaning that he could leave on a free transfer in the summer.
However, it is understood that John Eustace's side hold the option to extend the forward's stay at the Lancashire club until the end of next season.
Luton's pulling power in the race for Dolan will be largely determined by whether they can retain their spot in the Premier League, with the Hatters currently sitting in 18th, four points from safety.
Rob Edwards's side strung together a five-game unbeaten run across all competitions in January but have struggled so far this month, collecting just a single point from four top-flight contests.
The Hatters' first-tier status will also be imperative as they wish to keep hold of Ross Barkley, with the ex-Chelsea and Everton midfielder said to be capturing the attention of Manchester United.
The Red Devils' new minority owner Sir Jim Ratcliffe is a massive admirer of the former England international and knows the player well from his time at Nice - a club that the INEOS boss also has significant shares in.