Leicester-born Thomas came through the ranks at Coventry before making his debut as a 16-year-old against Leyton Orient in January 2014.
Coventry and Leicester agreed a fee after Thomas, whose contract expired in June, rejected fresh terms.
"We are disappointed George has come to this decision," Coventry manager Mark Robins told the club website (www.ccfc.co.uk).
"He is a fantastic lad and everyone associated with Coventry City wish him all the very best. Hopefully our paths can cross again at some point in the future."
(Reporting by Hardik Vyas in Bengaluru; editing by Amlan Chakrabortty)
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