Bailey impressed during his three-month stay at the npower League One club, who are keen to have him back when the transfer window opens next week.
Rams boss Nigel Clough has confirmed the two clubs are talking about an extended deal for the 24-year-old.
"James is back with us for a few days now although Coventry have made it clear they would like to keep him and we are talking to them about that," Clough told Derby's official website.
"He's enjoyed himself there and got games under his belt, so we'll try and work something out which suits everyone.
"It's no slight on James and his ability that he can't get in our side either, it's just the likes of Craig Bryson, Will Hughes, Paul Coutts and Jeff Hendrick can all play in that position and are head of him.
"He trained with us (on Thursday) and he's around for the next few days at least, so we'll just see how things progress."
Bailey joined Derby from Crewe in May 2010. He has made 62 appearances, the last of those coming as a substitute on the final day of last season against Peterborough.
The midfielder played 18 times for Coventry during his spell at the Ricoh Arena.