Naughton was due to return to White Hart Lane on Sunday before a deal was agreed to retain his services.
He will now line-up in the much-anticipated FA Cup clash with Manchester City.
"Kyle is an extremely talented young player and I am delighted that we have been able to extend his loan," Leicester boss Sven-Goran Eriksson told the club's official website.
"Technically he is very good, and he is very quick of course, which I like. Pace is important in the modern game, especially in Kyle's position.
"He will play an important role for us for the rest of the season, along with the other talented players that we have."
Source: PA
Source: PA