Warnock is yet to feature at Villa Park since Paul Lambert took over as manager and newspaper reports on Thursday morning suggested a season-long loan move could be on the cards for the 30-year-old left-back.
Coyle revealed Wanderers failed in a bid to bring Warnock to the Reebok Stadium before the summer transfer window closed and stated any move into the loan market must be financially viable.
"Stephen Warnock is a player I've always liked, I've got to say that," he said. "We tried to do something before the deadline with him and it never materialised. "I don't know if that's been regurgitated or whatever. There's no doubt he's a very good player and a good lad but, again, if we're doing anything as regards loan market finances will dictate everything we're trying to do. "The loan market is an avenue that's open to us and its something we always look at but I think it would be wrong to say we're close to signing any individual player at this moment in time."