Coventry say an EFL extraordinary general meeting to discuss their future has now been cancelled after reaching this agreement, after The EFL had given the Midlands club until May 29 to inform it where they will be playing their home games next season.
If they had failed to secure a home for their Sky Bet League One fixtures next term then they could have been voted out of the Football League.
Coventry still hope to remain at their home ground and but talks with rugby union club Wasps - who own the stadium - have continually broken down.
Coventry owners Sisu have taken their legal complaint to the European Commission and Wasps insist they must drop their challenge in the courts as a precursor to negotiations over a new agreement.
In a statement, Coventry said: "This groundshare is in place to make sure the club has somewhere to play in the scenario of a deal to play at the Ricoh Arena not being agreed.
"We can confirm that talks with the aim to achieve a deal to play at the Ricoh Arena are continuing between Coventry City Football Club, its owners SISU and Wasps Holdings Limited.
"Our focus and desire is to agree a deal at the Ricoh Arena - this is everyone's preferred option, and the right option for Coventry City. While the back-up of a groundshare exists to ensure the future of the football club continues, another groundshare is not something anyone wants to happen."
The EFL had told Coventry they do not want them to be based any further than six miles from their current home, with Birmingham's St Andrews ground 18 miles away.
Coventry Rugby's Butts Park ground is within six miles and could still remain an option.
The statement continued: "Details of the agreed groundshare and of our ongoing discussions with Wasps Holdings Limited remain confidential, due to mutually signed confidentiality agreements.
"We understand the frustration that fans are feeling, and have expressed to us, at not knowing where their club will be playing next season, not being able to plan for next season and supporting Mark Robins and the team, and the time that this is taking."
