McPake will spend the rest of the season on loan at Easter Road.
Coventry chief executive Tim Fisher said: “James has made clear his desire to play regular first team football and we fully support that.
“We wish him well in the SPL and will review the situation when he returns to us after his loan spell.
“(Coventry boss) Andy Thorn is also committed to continue strengthening the squad following the encouraging debuts of Alex Nimely and Hermann Hreidarsson at the weekend and this loan move will help towards that.”
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.