The centre back joined Tranmere on New Year's Day and has made 15 appearances for Tranmere.
Assistant Manager John McMahon told the club's website: "Stephen is developing well in his time with us and I'm delighted to be able to keep him at the Club.
"We've got six massive games remaining, starting this Saturday at home to Shrewsbury Town, and it's important we have as many players available to us as possible.
"We had a great win at Colchester last weekend and now we want to get back to back wins.
"It will be a big help to us if our fans get down to Prenton Park and show the lads their support."
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