The Irish defender has impressed at Glanford Park, having made four appearances since joining on deadline day. The initial deal is set to expire this week but an extension has been agreed.
Scunthorpe manager Alan Knill was quick to sing the praises of his player, saying that "when the ball comes into the box he (Duffy) really wants to head it - before anyone else. He's a proper centre-half."
Knill continued: "I've spoken to Shane and he is benefiting from playing in someone else's first team. It's better he plays in a competitive team that is playing quite well than in the reserves.
"That's what they sent him to us for, to learn, and that's what he's doing. I think he's getting better."
Duffy, who was instrumental in Scunthorpe's 2-1 victory over Yeovil Town on Saturday, will hope to get some more time on the pitch when the Iron travel to Stevenage this weekend.
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