I need the link local address to be acquired by the avahi-autoipd daemon, when the dhcp server goes out of network. How can I do this?
Referring to the udhcpc documentation, it supports a callout script and will indicate when a lease is gained and lost. You would need to look at customising this script to call and kill avahi-autoipd as appropriate.
There is no pre-existing integration for this that I am aware of but it would not be difficult.