The Leicester boss confirmed Schlupp is currently on trial with the Premier League leaders, but revealed he "didn't know" whether the Ghanian international would sign with the club.
Schlupp has entered his third week on trial with Sir Alex Ferguson's side, as the United boss weighs up a permanent move for the 20-year-old.
And Pearson admitted he doesn't know what United's intentions are at this point.
Speaking to BBC Radio Leicester, Pearson said: "He's still at Man Utd. It's as it was. It's an arrangement between the two clubs and Jeff is enjoying himself there. Both clubs are happy and we will see where it takes us."
The pacey forward has come through the Leicester City academy, and established himself as an important part of Pearson's side earlier this season.
The Foxes sit second in the Championship - well-placed for automatic promotion to the Premier League - but have been without the striker for the past few weeks. The club signed striker Chris Wood from West Bromwich Albion in the January transfer window.
Schlupp has primarily played as a forward for the Championship club, but can also operate out-wide. He even enjoyed a brief stint at left-back for the Foxes earlier this campaign.
Schlupp appeared for Germany under-19s as a youngster, but has since gone on to become a full Ghana international. He made his debut for the Black Stars against Gabon in November 2011.