Collett has come through the club's ranks and was first choice Academy keeper making some cracking saves for Greg Rioch's U18's team.
"I'm delighted to be offered a deal especaiily as I am a Coventry kid said Collett to the club website. "The U18's didnt have the best of seasons last year but I suppose in a way that brings out the best in you as a keeper.
"I'm really excited and can't wait to get going. Hopefully, I will have some reserve experience next season and be involved and around the first team.
Neil Collett left
"I've worked with Oggy ever since I was at the club - I can't get away from him. He is my hero and I'm looking forward to working with him and the other keepers.
"We've signed Kieran Westwood who is a quality keeper and we've made some other good signings so I can't wait to get started.
Michael Quirke will fill Collett's place if City decide to continue with their Academy in the coming season. An announcement is expected shortly.