The 29-year-old has been without a club since parting ways with Mamelodi Sundowns at the end of last season, embarking on a lengthy search for a new home.
Coetzee was initially invited to train with Babina Noko for several weeks without any guarantee of a deal and, after a brief spell away, he returned to continue working under head coach Eric Tinkler and his technical team.
Following steady progress during that period, the club has now rewarded him with a contract running until the end of the current campaign – effectively a three-month deal with an option to extend.
Any renewal is expected to depend on both his performances and ability to remain injury-free, with his career having been plagued by injuries in recent years.
A proposed move to Scottish giants Celtic in 2017 collapsed after a medical revealed a persistent foot problem, a setback that stalled what had been a rapid rise.
Once the youngest player to represent Bafana Bafana, he was widely tipped for a move abroad but Sundowns later offered him a lifeline under former coach Pitso Mosimane, where his versatility across defence and midfield proved valuable.
However, recurring fitness issues ultimately limited his impact and led to his release.
With eight matches remaining this season, Coetzee now has a narrow window to revive his career.
Sekhukhune, meanwhile, are pushing to secure a top-three finish and the midfielder will be hoping to play his part in the remaining Betway Premiership fixtures from next month and earn a longer stay.