The 21-year-old, son of Manchester United legend Peter, made his debut for Sven-Goran Eriksson's side this season, starting the campaign as the club's first-choice keeper.
Schmeichel returned to City at the turn of the year but could still not force his way into Eriksson's plans, and in March he agreed to join Coventry until the end of the season.
"I spoke to Sven last week and explained to him that I want to play first-team football," said Schmeichel.
"He said that he can't promise me that, so if I am honest it looks like my future might not be at City.
"I have got three years left on a good contract so I could bide my time, but I am a footballer and I want to play. It is as simple as that.
"The future is exciting. I could go anywhere in Europe to play my football: Spain, Italy or stay here in England.
"I am looking forward to it but for now I am not thinking about that. I am a Coventry player at the moment and my job is to help Coventry to be safe (from relegation)."