Danns has just returned to Leicester after a loan spell at Bristol City, but he is well down the pecking order in Nigel Pearson's plans.
Pearson is happy to let Danns go out on loan again as he is unlikely to figure in his plans for the second half of the season.
Bristol City were keen to bring him back to Ashton Gate, but Huddersfield have stolen in to bring the 30-year-old to the John Smith's Stadium.
Huddersfield boss Simon Grayson is keen to bolster his midfield options in this month's transfer window and he sees Danns as a key addition to his squad.
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