Managing director Paul Fletcher has revealed Coventry are "in the early stages" of talks with an unnamed investor which may lead to a takeover of the club.
The Sky Blues, who are #28million in debt, are hoping their fortunes will be transformed by a cash injection in the coming weeks enabling new boss Iain Dowie to build a promotion-winning side with summer transfer funds.
Midlands rivals Leicester were finally taken over by former Portsmouth owner Milan Mandaric earlier this month and Fletcher is eying a similar scenario at the Ricoh Arena.
He said: "One of my jobs at the club is to attract new investment and there are things going on behind the scenes at the moment. But talks are still in the early stages.
"We are looking for new investment. You have seen investment coming into Premiership clubs and Championship clubs recently and when the time is right we will announce what is happening at Coventry City.
"Investment is vitally important. You can’t trade yourself out of a #28million of debt, you have to reform the club and we are doing that both on and off the field with new and different initiatives that are all part and parcel of Operation Premiership."
Dowie became City’s new manager on Monday but had held talks with Leicester about fronting the club under Mandaric.
Asked whether Dowie’s decision to turn down the Foxes had anything to do with potential investment at Coventry, Fletcher added: "The decision to bring Iain here, along with something else that we hope is going to happen in the next few weeks, are two key components of Operation Premiership.
"Iain was made aware of the situation and the ambition of the club but you would have to ask him whether it influenced his decision to come here."