While his enthusiasm and personality left an impression on the club's coaching staff, Coleman does not believe the striker is up to Championship standard at this stage.
The former Fulham boss told Indian Express: "A lot was made of him coming over and I think he is going to go around a few clubs.
"He has had a few days with us but that is it.
"I understand he has a big reputation in India and he is a very nice young man but we won't be following up our initial interest."
Chhetri will now return to India but said he was not disappointed about failing to land a contract at Coventry.
He said: "I am not disappointed or dejected. I have enjoyed my stay here and have gained a lot."
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