Clifford is available on a free transfer after being released by Chelsea in January with his contract due to expire in the summer.
The 21-year-old failed to make the breakthrough into the Blues first-team and had spells out on loan at Portsmouth and Crawley Town this season.
Clifford linked up with Leicester on trial last month and the Republic of Ireland Under-21 international has featured in a few U21 games for the Foxes.
The midfielder has impressed Leicester boss Nigel Pearson during his stint at the King Power Stadium and he has handed Clifford a deal until the end of the season.
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