Steele was all set to leave Sunderland, but a move to Derby fell through on deadline day.
It left Sunderland with three goalkeepers, which seemed excessive at the time.
However, an injury to Robbin Ruiter threatens to keep the German stopper out for the remainder of the season.
And Coleman admits that Sunderland got lucky that Steele is still at the Stadium of Light now.
“Funny how it works, with the keepers Robbin will be out for 8-12 weeks, bad dislocation," Coleman said.
"Lee Camp is here, now Steele is still here too to fight it out. Lucky that deal (to Derby) fell through in the end. Jason looked good last week, trained well and played with the 23s.”
Steele is set to only be given a covering role for the remainder of the campaign, as Sunderland did bring in Lee Camp in January.
Camp will become Sunderland’s number one for the remainder of the campaign, and Coleman will be hoping he can provide a solid platform for the side’s defence.
Steele and Ruiter have both been shaky throughout the season to date, and Sunderland will need Camp to step up to the plate if they are to avoid relegation.