The 22-year-old joins the Sky Blues up to and including June 30, 2014.
Delfouneso, a product of Villa's youth academy, was shipped back from Blackpool earlier this month. He has represented England at every age group from the under-16s right through to the under-21s.
Steven Pressley said he was delighted to secure the services of the striker after fending off strong interest from elsewhere.
"Nathan had always been high on our shortlist for this window and we'd pursued him for a number of weeks so we are absolutely delighted to be able to bring him in," Pressley said.
"He has a great level of experience for somebody of his age and his ability is something we feel will give us the kind of attacking threat that we want.
"I have been saying throughout this month that we wanted to add strikers in this window so to get someone of Nathan's calibre through the door is exactly the kind of business that we want to be doing."
"Nathan had always been high on our shortlist for this window and we'd pursued him for a number of weeks so we are absolutely delighted to be able to bring him in," Pressley said.
"He has a great level of experience for somebody of his age and his ability is something we feel will give us the kind of attacking threat that we want.
"I have been saying throughout this month that we wanted to add strikers in this window so to get someone of Nathan's calibre through the door is exactly the kind of business that we want to be doing."
The player failed to make a massive impact on Villa's first team, finding himself well down the pecking order and will be hoping to revitalise his career at the League One outfit.
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