The 21-year-old, who spent just over two months on loan at Cardiff earlier in the campaign, is set to make his Coventry debut against Sheffield Wednesday on Saturday.
Schemichel played in City's first seven Premier League games under Sven-Goran Eriksson, who is keen for the young Dane to get some more first-team experience.
He has previously had two loan spells at Bury and one at Darlington, in addition to a stint in the Scottish Premier League with Falkirk last term.
Coventry boss Chris Coleman said: "Kasper has shown this season that he has all the attributes to be a top-class Premier League goalkeeper, and I have no doubt he will be a very valuable addition to the squad.
"He has great ability and strength, plus he has age on his side. The future is certainly bright for him." Tweet
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Good luck Casper get stuck and keep learning i think you have a good future at city manchester that is
Frankie goes to Hollinwood !!
GO 4 IT KASPER
Good luck Kasper Hart and Schmeichel are 2 future keepers Isaksson will leave in the summer and on this Gossip news it said City are after Watford young keeper who is on loan at Bradord and Tottenham are after him as well called Scott Loach
Coventry? Never a good place to be sent.
A good move for Kasper . . . . Sven made the right choice in Hart, but Kasper still has great potential & hopefully a bright future at City.
What happens if Hart/Issakson gets an injury or a ban? Is there a recall option?