Coventry are in talks with an unnamed investor that could lead to the takeover of the Championship side.
Coventry are £28m in debt
"There are things going on behind the scenes at the moment, but talks are still in the early stages," said club managing director Paul Fletcher.
"We are looking for new investment. When the time is right we will announce what is happening at Coventry City."
City are hoping any takeover will eliminate their £28m debt and provide transfer funds for boss Iain Dowie.
Fletcher added: "Investment is vitally important. You can't trade yourself out of £28m of debt, you have to reform the club and we are doing that both on and off the field with new and different initiatives that are all part and parcel of Operation Premiership."
Fletcher said he did not know whether Dowie's decision to take over the manager's vacancy at Coventry had anything to do with a possible takeover.
"The decision to bring Iain here, along with something else that we hope is going to happen in the next few weeks, are two key components of Operation Premiership," he said.
"Iain was made aware of the situation and the ambition of the club but you would have to ask him whether it influenced his decision to come here."