The striker had started the season at Ipswich, featuring in their opening three matches, however, he was not seen as part of Roy Keane's plans at Portman Road and has been allowed to sign for Bristol City for an undisclosed fee.
Having passed a medical, Stead, who scored twice for Coventry whilst on loan last season, signed a three year deal and is expected to face the Sky Blues on Saturday September 18th.
Stead said to Sky Sports News: "I want to be a part of this club and I hope I can grow with the club."