The 20-year-old striker, who can also play at left-back, has been training with the Premier League side since the middle of January.
Pearson has said that he is unsure if the move will be made permanent.
"I don't know at this point, he's still at Manchester United," he told Sky Sports News.
"It's as it was. It's an arrangement between the two clubs and Jeff is enjoying himself there. Both clubs are happy and we will see where it takes us."
Schlupp, who came through the ranks at the King Power Stadium, has made five starts for Leicester this season.