New County boss Carlton Palmer is keen to bolster his struggling squad and he has moved to sign the Republic of Ireland Under-21 international.
Delaney has failed to win a regular place in The Foxes side this season and has made just one appearance in the Worthington Cup clash against Blackpool.
Foxes boss Dave Bassett has allowed the 20-year-old to go out on loan in a bid to get regular first team football and he becomes the second City player to have moved to Edgeley Park following Tim Flowers' loan move last month.
Delaney has joined in time to make his debut against Norwich City on Thursday and he becomes Palmer's second new signing this week following the capture of Aaron Lescott from Sheffield Wednesday on Wednesday.
Meanwhile, Leicester are being linked with a move for Middlesbrough striker Brian Deane.
Deane has been relegated to the sidelines recently by the form of Alen Boksic and Szilard Nemeth and Boro boss Steve McClaren is believed to be ready to let the former Leeds man leave The Riverside.
Bassett is a big admirer of Deane having had him at Sheffield United and he views his experience and battling skills as a valuable addition to a squad aiming for Premiership survival.
