Bailey missed Saturday's 3-2 success at MK Dons after having to return to Pride Park, but City boss Mark Robins has moved quickly to secure the 24-year-old on loan until the end of the season.
During his initial emergency loan spell, which started in late September, he made 18 appearances and scored one goal.
Robins told the club's website: "I'm absolutely delighted. He's shown in his time with us the contribution he can make and I just want to thank Derby for letting us have him for the rest of the season.
"I hope now that James can continue to have the kind of impact he's already shown he can have for us."