The talented left-back is on a season-long deal, though United have a break clause for the January market.
"I know they are very happy, and, of course, they have to be very happy," Pedersen told The Sheffield Star. "He is in a team that has a lot of trust in him and who work very, very seriously with him as a part of the team, but also individually.
"He also has a group of fantastic mirrors in our team of the senior players, where he can learn a lot.
"He is in a good group where he has a big respect around him, and we have big respect for Man United giving us the possibility (to sign him) and I am sure they have big respect for how we have worked with him.
"I hope we can continue after January. Of course, he fits well in our way of playing, he is developing well and I cannot see any reason not do it."