The midfielder has been on loan at New York since October and has impressed Millers boss Steve Evans enough to try and make the deal a permanent one in January.
The two clubs tentatively met a fortnight ago to discuss a fee and a second round of negotiations are set for next week.
Evans said: "There are further talks next week. I am just waiting to hear.
"Lee Frecklington has made it perfectly clear through his choice he wants to be at Rotherham United. It's now up to the clubs to agree a fee.
"It is more likely to happen than not to happen, but as we have learned it is difficult and we don't talk about it in any great detail until the papers are signed."
