He stayed at this club for just one season, in which he finished Manchester city's top scorer with 12 goals and in August 1986 was sold to Derby County for £200,000.
Following Grayson's sacking on 24 January 2013, he became caretaker manager again, this time taking charge of 5 matches, beginning and ending with Town's FA Cup 4th round tie against Leicester City.
His 5 games in charge saw Town draw with Leicester in the cup, get a 1–0 win over Crystal Palace, before losing 3–0 to Lillis' former club, Derby County, then holding the runaway leaders Cardiff City to a goalless draw, then getting a 2–1 win against Leicester in the cup replay at the King Power Stadium, setting up a 5th round tie with Premier League side Wigan Athletic.
Following the departure of Mark Robins after a 4–0 defeat by AFC Bournemouth, Lillis was once again made caretaker manager on 11 August 2014.
[2] Following the sacking of Chris Powell on 4 November 2015 he had his fourth stint as the caretaker manager, this though would only consist of the Yorkshire derby against Leeds United which they lost 3–0.