The right-back, 19, who came through the Sky Blues' youth system, impressed during a loan spell with Blue Square Premier side Nuneaton last season.
He made 17 appearances for Coventry's non-league neighbours, scoring one goal against Telford as his form helped the club stave off the threat of relegation.
"We are delighted to see Aaron commit his immediate future to the club," City boss Steven Pressley said.
"He impressed during his loan spell last season which has proved a valuable experience and we are hoping he continues with his hard work this season.
"I want to have a strong squad next season with every position covered, and Aaron will be an important part of that."