Many thought Richard Wood would have got the role but the City boss has plumped for the 36 year old who starts his second spell at the Sky Blues.
"First and foremost, Lee is a winner and signing him is a real coup because other clubs have been interested in him," said City boss Aidy Boothroyd to the CT.
"But we have got hold of him and he wanted to come here rather than anywhere else beause he can see what we are building and trying to do and he buys into that progression.
"He is a leader, who is strong, disciplined and he will be the conductor on it and one of the biggest things for me is that he will help me create the culture that I want at this football club, which is one of discipline, winning mentality and hard work - they are non-negotiables as far as I am concerned.
"I see Cars as important to us as Ryan Giggs is to Manchester United because he has such a good understanding of the game and knows how to win. Any good team needs a balance of talent, experience, physical presence, pace and obviously footballing ability. I want Lee to be the glue that binds that team together because he has all those."
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