City have been in administration since March and were forced to leave the Ricoh Arena after a rent row with the stadium's owners, meaning that the club will play their home games at Northampton's Sixfields stadium for the next four years.
A move to the centre of Coventry was always on the club's agenda and they have acted quickly to find a potential site.
Chief executive Tim Fisher told Coventry's official website that terms have been agreed for the new site and they hope to have a deal finalised within eight weeks.
"We completely understand the pain the groundshare is going to cause our supporters but we have a clear path to return to the Coventry area," Fisher said.
"We are under no illusions at just how tough it is going to be for the next three years but there is absolutely no question that Coventry City Football Club’s long term future is in this area.
"Once we have agreement on a site, we will begin a consultation process with our supporters because we want this to be their home – a home that everyone can be proud of.
"And, of course, a home where the club has access to all matchday and non-matchday revenues which are crucial when it comes to financial fair play."
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