Originally Posted by Human Rasengan
but when Madara made his speech to Naruto he said the battle between Naruto and Sasuke would decide the feud between Uchiha and Senju.. Sasuke is an Uchiha and that would mean that Naruto is Senju if the feud is to be settled by these two
The entire thing is a battle of idealogies. Remember: Jiraiya and Orochimaru had the same basic conflict. Orochimaru is no Uchiha. Naruto doesn't have to literally be a Senju, as the Senju have spread their idealogy beyond the borders of their bloodline. Naruto just embodies it.