The 19-year-old forward enjoyed a successful six-month spell with League One Swindon last season, playing a major part in helping the Wiltshire club to reach the play-off final at Wembley.
Ward, who recently signed a new three-year contract at the Reebok Stadium, is expected to be followed through the door at the Ricoh Arena on Friday by former Watford, Wigan and Hull striker Marlon King who is currently a free agent.
Speaking about the capture of Ward, Sky Blues manager Aidy Boothroyd said: "Danny is a fantastic signing for us. 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, and we will get the benefit of that development, while he will benefit from being here."
Source: Team Talk
Source: Team Talk