The decision comes following the success of the character – who is sister to Edna Birch (Shirley Stelfox) – after she turned up in the Dales last November, staying for a three-episode stint.
Of her return, the former Neighbours actress said: "I'm thrilled to have been asked back and am looking forward to working with Shirley Stelfox again.
"It will be interesting to discover more about Lily’s background and character this time around, and I am excited to see where writers take me."
Anne, who is famed for her role as Madge Bishop in the Australian soap, begins filming in the summer and will be back on screen in September or October. Her contract takes her to the end of the year.