Labour MP and former minister Keith Vaz wrote a covering letter for the permit application after which the British government granted Shetty the necessary work permit, enabling her to make money from lucrative personal appearances and media interviews.
"I am delighted to support her application to stay longer in the UK," said Vaz, the Leicester East MP.
The Indian actress is now in India because the original document allowing her to earn money in Britain had expired when the Channel 4 reality show came to an end two weeks ago.
Shetty has now become one of Britain's most recognised faces, according to the Daily Mail newspaper.
Her show housemate Jade Goody's racist slurs had caused outrage in India and Britain and the issue was raised in the House of Commons. Feminist diva Germaine Greer and even two Indian ministers demanded corrective action.
The Indian star bagged an estimated 100,000 pounds (almost Rs.9 million) in prize money after winning the show.
Shetty, who made her debut in Bollywood with the 1993 super-hit "Baazigar", which also starred reigning superstar Shah Rukh Khan, never managed to touch the skies as a star. Her dance numbers were more appreciated than her emoting powers.