McSheffrey, who joined Blues for a fee in excess of £4million in the summer of 2006, has struggled to recapture the form which helped Blues to promotion to the Premier League two season's ago and has failed to command a regular place in Alex McLeish's starting XI this season although he is currently sidelined with a knee injury.
"Gary's been on our radar for some time," Coleman told BBC Radio Coventry.
"He's an ex-Coventry boy and a big fans' favourite."