The Northern Irishman saw a move to SPFL League Two side Albion Rovers fall through earlier this month due to red tape.
After starring in the Junior ranks last season, McAleer has made a solid start to the campaign for the Firhill second string, but Archibald is keen to see the forward tested at a higher level this term.
He said: "I think Caolan needs game time at first-team level.
"He was at Arthurlie last season and we were keen for him not to go to a Junior team again. He wanted to go to an SFL team if he could.
"We didn't know about the ruling, I think it is a new one. It is strange, it is stopping someone going out and playing football at that level.
"Caolan has done well for the Under-20s, but I think he needs to go and be in that first-team environment."
McAleer's Rovers deal fell through due to the Coatbridge club already having Mark McGuigan on loan from Thistle this season.
The striker has played a key part in Albion's start to the campaign, but despite seeing his side struggle to find the net in the Premiership, Archibald has no plans to recall the 24-year-old frontman.
He said: "It is good to see Mark doing well, I think he is enjoying it. He wanted to go there and play as much as he could and he is scoring goals as well. He has just got to keep doing what he is doing.
"It is a hard one. I don't want to bring him back and then not play him. It happened last year.
"He was in a good run of form with Albion Rovers and we brought him back just in case.
"We had a couple of injuries here. It was just before Jackie left and he brought him back.
"He never played and it was harsh on Mark to be honest. It is a hard one, I don't want to recall him and he ends up sitting on the bench."
A lack of cutting edge has cost Thistle dear so far this season as several Premiership points have slipped through their grasps in recent weeks.
And Archibald remains on the lookout for forward reinforcements.
He said: "I have said before that there is no point bringing someone in if they are not better than what we have got.
"We tried to get two or three strikers in at Premiership level and either we couldn't afford it or they chose to go elsewhere.
"The other ones that have come in, I don't think they were any better than what we have so that is why they have not been signed.
"There are guys that haven't been picked up.
"We have had one or two offered to us but if they are not better than the guys here."