The Cottagers are trying to ship out the 26-year-old before the transfer deadline as he has refused to extend his contract which expires next summer.
Malbranque has already rejected a switch to Middlesbrough, while West Ham United are reported to be keen on the schemer.
But a groin injury is holding up a transfer as Coleman claims the player is digging his heels in over a quick-fix operation.
"The op that would keep him out for just a few weeks wouldn't jeopardise a move," said Coleman.
"The other would keep him out for three months, so clubs are not going to buy him."
Coleman has become increasingly exasperated by the situation and insists Malbranque will not be playing for the club again.
With only three weeks until the window shuts, the Fulham boss is prepared to take drastic action in a bid to offload the former Lyon starlet.
He added: "I wouldn't rule out cancelling his contract.
"As long as I am picking the team he won't be playing."
Sky Sports