We investigated a visuomotor mechanism contributing to reach correction: the manual following response (MFR), which is a quick response to background visual motion that frequently occurs as a reafference when the body moves. Although several visual specificities of the MFR have been elucidated, the functional and computational mechanisms of its motor coordination remain unclear mainly because it involves complex relationships among gaze, reaching target, and visual stimuli. To directly explore how these factors interact in the MFR, we assessed the impact of spatial coincidences among gaze, arm reaching, and visual motion on the MFR. When gaze location was displaced from the reaching target with an identical visual motion kept on the retina, the amplitude of the MFR significantly decreased as displacement increased. A factorial manipulation of gaze, reaching-target, and visual motion locations showed that the response decrease is due to the spatial separation between gaze and reaching target but is not due to the spatial separation between visual motion and reaching target. Additionally, elimination of visual motion around the fovea attenuated the MFR. The effects of these spatial coincidences on the MFR are completely different from their effects on the perceptual mislocalization of targets caused by visual motion. Furthermore, we found clear differences between the modulation sensitivities of the MFR and the ocular following response to spatial mismatch between gaze and reaching locations. These results suggest that the MFR modulation observed in our experiment is not due to changes in visual interaction between target and visual motion or to modulation of motion sensitivity in early visual processing. Instead the motor command of the MFR appears to be modulated by the spatial relationship between gaze and reaching.