Schlupp, who came through the youth ranks at City, has spent the past month with the Barclays Premier League leaders, making two appearances for the Red Devils' Under-21 side.
Reports this week have suggested a deal is in place for the 20-year-old to move to Old Trafford in the summer, but Foxes boss Nigel Pearson insists those stories are wide of the mark for the moment.
He told BBC Radio Leicester: "We will be discussing what the next step is, and as soon as we find that out ourselves then we will let you know. He has done well up there."
German-born Ghana international Schlupp is a striker by trade but he has been used as a makeshift left-back by Pearson on several occasions this season.