The 31-year-old initially joined Dougie Freedman’s side on loan in September and after a bright start, had that spell extended in January.
He has now played 34 times for the Reebok Stadium outfit this term, scoring six goals. Liverpool-born Danns joined City in the summer of 2011 from Crystal Palace, but has also had spells with Blackburn Rovers, Colchester United, Birmingham City and Huddersfield Town.
In total, Danns made 42 appearances for the Foxes, scoring six goals. His most recent appearance came in the 5-2 Capital One Cup victory over Carlisle United back in August 2013.
The Club would like to thank Neil for his contribution and wish him all the best for the future at Bolton.