"It's fantastic to have him back," City manager Bryan Gunn told the club's official website.
"I bumped into him at Molineux last week and realised he wasn't part of Mick McCarthy's immediate plans and it was an opportunity to bring in a quality player in an area of the pitch we need cover.
"He knows the place, the football club and it made the decision very easy. Jason is looking forward to the next three months at the Canaries."
Shackell added: "I want to play some games and it's a good opportunity for me - especially at a club with so many players I know so well."