London-born Alabi has made four appearances for the Iron since arriving for an initial month-long stay at the end of February and is due to return to the Britannia Stadium after Saturday's home clash with Doncaster.
"We can keep him until the end of the season if we want to," Laws told the club's official website.
"James is only 18 and we have to remember that. We've brought him in as a support mechanism. He provides an extra body and doesn't cost us anything.
"We can also have a look at him, not just for now but next season as well, because we'll have to rely a lot on loans next year I believe.
"There's a chance we'll probably extend that, but we'll wait until after the weekend."
Alabi, yet to appear for Stoke's first team, has scored one goal for Scunthorpe, on his debut in the recent 2-1 home defeat to Hartlepool.