The 21-year-former West Ham United and Rangers player will remain at Edgar Street until 3rd January 2009.
Ashikodi started his career with Millwall, making his first-team debut in February 2003 when he was only 15.
After brief spells with West Ham and Rangers, Ashikodi moved to Watford in January 2007, but has made only three first-team appearances for the club.
He has also spent loan spells with Bradford City and Swindon Town in the last 18 months.