The 23-year-old midfielder made 17 appearances for Latics this term, helping them to win the League One title.
He was expected to use his time at the DW to get game time before going back to Deepdale to challenge for a first-team spot.
But North End have confirmed he is one of three players who they will 'listen to offers for'.
It remains to be seen whether Latics will look to bring him in on a permanent deal, or switch their sights elsewhere.
Bayliss has one year remaining on his contract, after arriving from Coventry in January 2017.
Fellow Latics old boy Scott Sinclair - who spent the 2009-10 campaign on loan with Latics - is one of 13 players to have been released.
Also on the way out of Deepdale is striker Joe Rodwell-Grant, who has been recently turning out as a trialist for the Latics Under-23 side.
“It’s been a pleasure to work with each and every player that’s been here since I walked through the door," said Preston manager Ryan Lowe.
“They’ve been brilliant. The attitude and application has been top drawer and I’ve thanked them all for that.
“There’s always tough decisions to be made at this stage of the season when contracts are coming to an end.
"But ultimately that’s football and I’ve got to take this football club in a different direction.
“I’m sure that some will now be looking forward to a new challenge elsewhere, and I wish each and every one of them all the best for the future.”