The Liverpool defender has played 31 times for the first division club since joining them at the start of the season.
"I've been mightily impressed with him, not only as a football player but as a man," said Sky Blues boss Eric Blavk. "His attitude is magnificent and he trains the way that people train at top clubs.
"You can see the same thing with Steve Staunton – they set personal standards and train the same way.
"Stevie Warnock has been a carbon copy of him. He's got great enthusiasm and a great desire to be a football player like a few of the other younger boys we've got here.
"I would be delighted to secure him long term and we're negotiating that at the moment."