Al-Habsi joined the Trotters from Lyn Oslo in 2006 but has made only 10 appearances in four years due to the form of Jussi Jaaskelainen at the Reebok Stadium.
Now 28, and contracted to Bolton until 2013, he was keen to get first-team football and jumped at the chance to join Wigan when offered a loan move.
However, Coyle insists Al-Habsi will only be away for one season as he is still an important member of his squad in the long term.
"It's an opportunity for Ali to gain some first team experience with an established Premier League side," he said. "Ali is a terrific lad and a loyal servant to Bolton Wanderers.
"We had a chat and felt this was a chance for him to get some games under his belt.
"Jussi Jaaskelainen is our number one and Ali has found himself behind one of the best goalkeepers in the Premier League.
"This season-long loan means he will come back to us stronger."