The 27-year-old Frenchman's spell at City has been hampered by injury - he came on against Arsenal in the Carling Cup in October but was replaced within minutes after pulling a muscle.
He has enjoyed better luck in the reserves this season, recently converting from midfield to attack and scoring a number of goals alongside Bradley Wright-Phillips.
In all, Negouai has made just 10 appearances for City in three years, his most recent action coming in the defeat at Everton on Boxing Day, when that time he was sent off just minutes after coming on.
He is set to go straight into the Sky Blues squad for their FA Cup fourth round match with Newcastle at St James' Park on Saturday.