Featherstone completes Iron move
The 19-year-old initially The Iron on a month's loan from Division One club Sheffield United in October and has remained at Glanford Park ever since.
Feathersone was recently out of manager Brian Laws' side through injury but will continue to help the Lincolnshire club make a push for the promotion play-offs for the rest of the campaign.
On the decision to let Featherstone join Scunthorpe, Blades boss Neil Warnock told the club's official website: "Lee has done well at Scunthorpe and we feel that he will stand a better chance of first team football there.
"We've agreed a deal with a sell on clause and wish him all the best."
No transfer fee was exchanged for the midfielder but a 'transfer agreement' has been signed between both clubs, should Featherstone move on from The Iron in the future.