The 20-year-old left-back has made two Champions League substitute appearances for Pep Guardiola’s Premier League champions this term.
He joined City from West Ham’s academy in 2019 and was handed his senior debut in last season’s 6-1 Carabao Cup success over Wycombe.
Sky Blues boss Mark Robins told his club’s website: “He is a very talented footballer, with pace, power and technical ability, and a lot of potential.
“He has been in and around the first-team set-up at Manchester City over the last 12 months. We’re looking forward to working with him.”
Coventry, who sit 14th in the Sky Bet Championship, return to action at leaders Burnley on Saturday after being knocked out of the FA Cup by non-league Wrexham at the weekend.