Nuno said he had full confidence in Germany international Shkodran Mustafi and Portuguese Ruben Vezo and the central defensive pair had performed well in Wednesday's 3-1 Champions League playoff victory at home to Monaco.
However, with a busy season ahead, when the Singapore-owned club are hoping to mount a genuine challenge for silverware in both Spain and Europe, another player was needed, the coach told a news conference previewing Saturday's opening La Liga match of the campaign at Rayo Vallecano (2030 GMT).
"We are aware that we need another centre back," Nuno told reporters.
"We have a lot of options but the market will dictate," added the Portuguese.
"There are times when there are players you want but for whatever reason they are not available."
Otamendi's move to City was announced on Thursday in a deal reported to be worth 45 million euros (32.4 million pounds).
(Reporting by Iain Rogers, editing by Sudipto Ganguly)
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