City have agreed a three year deal with his current club AZ 67 Alkmaar and the defensive midfielder will sign on July 1st.
Said Chris Coleman to the club website: "Aron is a very talented young player and it's fantastic that he's chosen to join us at Coventry City Football Club.
"We were not the only club interested him and he has got lots of quality. He's good on the ball, can pick a pass and he's not afraid to get stuck in either.
"He's only a young boy but he's already proven that he is capable of playing on the biggest stage and I have no doubt that he has got the ability to be an important player for us in the Championship next season."
The Icelandic international of three games said to the CT: "This is a whole new level compared to Holland and I'm eager to get started. "I will work hard for my place from the first eleven from day one otherwise I wouldn't have come here."