The Sky Blues had been tracking the talented teenager for some time, with boss Aidy Boothroyd admitting that he was keen to bring the youngster on board.
They were forced to bide their time, though, as the Trotters were reluctant to let the 18-year-old forward leave before he had signed a new deal at the Reebok Stadium.
Ward finally put pen to paper on a three-year contract on Tuesday and has subsequently been cleared to head out on loan.
Boothroyd is delighted to have captured the highly-rated frontman and expects him to make a positive impression in the Championship before his short-term agreement expires on 1st January.
Potential
"Danny is a fantastic signing for us," he said.
"There was a lot of interest from other clubs in the division, so it is a testament to the set-up here that he opted to join us.
"He adds another option to the squad and he has the potential to get goals, so I am looking forward to working with him.
"Everyone saw what he was capable of during his spell with Swindon last season and he will only get better.
"We will get the benefit of that development, while he will benefit from being here."