The Spanish media are linking the 22-year-old Garrido to City in a deal which is being claimed could earn Sociedad up to three million euros (£2million).
Whatever money Sociedad get for the left-sided player, Coleman is determined to see it re-invested wisely as he looks to build a side capable of returning the Basque club to the Primera Liga following their relegation last season.
"Whatever the amount is, we will try to use it well. We cannot make mistakes in the transfer market, nor spend money that we do not have," said the Welshman, who would be sorry to see Garrido go.
"Javi is a good player and I don't know any coach who would not prefer to have good players," Coleman said.
"It would be a loss, but that is how the situation is. If he wants to go and the clubs reach an agreement..."