Aviva Premiership club Wasps and the Sky Bet League 1 side announced in a joint statement that Ricoh Arena operators Arena Coventry Limited had extended the current licence agreement with the football club until the end of the 2017-18 season.
The statement said it allowed both clubs to "plan ahead with certainty over the next two-and-a-half years."
Coventry's existing deal was signed in August 2014, with a two-year extension option. Wasps, meanwhile, played their first game at the ground a year ago, relocating from their previous Wycombe base.
Chris Anderson, the Sky Blues' executive vice-chairman, said: "We are pleased to reach an agreement to stay at the Ricoh Arena for the foreseeable future.
"I have already said on several occasions that it is important for us to have security about where we are going to play football next year, and know our supporters and stakeholders join me in looking forward to an exciting second half of the season.
"I would only add that I appreciate the co-operative spirit in which we have come to an agreement with Wasps."
And Wasps chief executive David Armstrong added: "Naturally, we are very pleased that Coventry City will continue playing at the Ricoh Arena until at least the end of the 2017-18 season.
"We have always said we are keen to work alongside the football club and for the Sky Blues to stay at the Ricoh Arena, which continues to be their home as well as Wasps' home.
"We look forward to continuing to build a strong working relationship with Chris Anderson and his team."