The move follows a meeting on Friday morning with Coventry's major creditor, Arena Coventry Limited (ACL), the company that owns the Ricoh Arena.
ACL refused to accept the Company Voluntary Agreement (CVA) that was put before them, forcing Coventry City Ltd, one of the club's constituent parts, into liquidation.
The club were deducted 10 points last season for going into administration and the Football League must now assess the situation.
Coventry could now start the new campaign with a 15-point deduction and will play at Northampton Town's Sixfields Stadium in 2013/14.
ACL are understood to have offered Coventry the opportunity to remain at the Ricoh Arena on a reduced rent but that option now appears unlikely.
"It is with great regret that a proposed Company Voluntary Agreement (CVA) has been rejected by Arena Coventry Limited (ACL)," read a statement on the club's official website.
"The football club and the Alan Higgs Centre Trust accepted the administrator's CVA, but the City Council, through ACL, have chosen to reject it - leading to the risk of a 15-point deduction.
"The club will hold urgent meetings with the Football League to go through the next steps for the football club."
Despite their problems off the field, Coventry are expected to fulfil their opening fixture of the League One season away to Crawley on Saturday.