The 20-year old signed for the Second Division side in December and has featured in five league games so far as the Blues look to pull away from the relegation zone and manager Roy McFarland had no hesitation in extending the deal until the end of February.
Niven has yet to make his Wanderers debut having been signed from Raith Rovers in December 2001 and a spell out on loan in the Nationwide League will be of great benefit to the player.