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Leonard had two loan spells at Northampton Town before joining City 18 months ago.
His last appearance was on New Year’s Day, when he came on as a substitute in a 3-0 defeat to Watford.
Half of his 64 appearances overall have been off the bench as the Scot finds it more difficult to secure a starting place following promotion to the Championship, where Birmingham sit in 13th place.
Hearts will be without suspended player Bennie Banningame for Sunday’s crucial Scottish Premiership clash, with fellow midfielder Cammy Devlin out for up to two months with a lower leg injury.
Leonard’s arrival bolsters Hearts’ midfield options and comes after Forest Green Rovers boss Robbie Savage confirmed his club had rejected a bid to buy Laurent Mendy from Tynecastle.
“Every minute I worked with him, he was fantastic and that’s why Hearts made an offer, but it didn’t meet the club’s assessment,” Savage told club media.
“I think now Hearts have moved on further. I’m sure the lure of Hearts – leaders of the Scottish Premiership – was a real attraction for the 29-year-old.
“I’m not naive enough to think that a player in his position wouldn’t be tempted by that. I can’t speak for Mendy, but a team like Hearts with the potential to win the league and qualify for the Champions League would have been an unbelievable opportunity for an unbelievable player.
“Inevitably, if the assessment is not met, the club will decide what happens.”
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