The striker, has been told that he is not part of the picture at the Ricoh Arena and has attracted some interest from clubs including Plymouth, Hartlepool and Leyton Orient.
However, his £10k a week wages have proved a stumbling block as that is beyond the budgets of many Football League clubs and now the Sky Blues have come up with this compromise as a way of getting the Scot some football until his contract expires in June.
A deal with Hartlepool fell through because the clubs could not agree a figure.
City have already loaned out Julian Gray to Fulham and will listen to offers for Gary Borrowdale and Chris Birchall.