The 32-year-old forward joined Coventry in the summer of 2019 from Peterborough United.
Last season, Godden featured 33 times for the Sky Blues, scoring eight goals while laying on four assists and helping Mark Robins side reach the Championship playoff final.
Godden has sparked interest from League One outfits Derby and Oxford.
Derby’s Paul Warne wants to add an experienced striker to his forward department as he plans to take the Rams back to the Championship this season.
Oxford, who have already brought in three centre forwards this summer, have also been firm admirers of Godden.
However, despite strong interest from Derby and Oxford, Godden has decided to commit his future to Coventry.
The 32-year-old will sign a new two-year deal with an option to extend it for another year.
