Rodriguez is widely expected to complete a move to Los Blancos next week following weeks of speculation.
However, Germain has insisted that the Ligue 1 side can move on from the attacker.
"All the players have faith in the club's officials," Germain told L'Equipe.
"If James leaves, as he's considered as one of the best in Europe right now, it would be a huge loss. But Monaco can always buy new recruits. I'm sure we'll have a team as competitive as last year."
Madrid will reportedly pay £70m for Rodriguez.