McNicholas, who has a contract with Wrexham until 2026, aims to gain more first-team experience with the National League side.
The former Republic of Ireland youth international initially joined Wrexham on loan from Sligo Rovers last season.
He secured a permanent move in January and has since made three appearances in the Bristol Street Motors Trophy.
Manager Phil Parkinson commented on the loan decision, stating, “It’s the right time for Luke to go out and play. He’s trained really well with us and had a few first-team games for us last season. We feel that for his development, he is ready to go and play, and I’m sure he will be a very good signing for Rochdale.”
