Coventry have been searching for a potential groundshare partner since deciding not to return to the Ricoh Arena after a long-running dispute over rent.
The Coventry Telegraph announced the deal as an exclusive on Wednesday with the Football League set to discuss the arrangement at a meeting on Thursday.
The news came just hours after an announcement that a deal had been struck between NTFC and the local council which would lead to the expansion of Sixfields.
Cobblers chairman, David Cardoza, said of the council agreement: “We’ve been waiting for this for seven or eight years now, so it’s fantastic to finally reach this stage.”
Quoted on the groundshare issue on Thursday he told BBC Radio Northampton: "There's some legs in this, but it's not near done and dusted."
Reports that Coventry would be sharing the stadium for, potentially, the next three seasons, however, has led to some criticism of Northampton's stance.
An interesting piece on our sister site Coventry City Mad can be found by clicking the link below.