This works fine, change logic as per requirements :
<?php
echo "ready!";
echo $this->Html->image('logo.png', array('style' => 'height: 40px; width: 70px;','id' => 'changeimg','onclick' => 'changeImage()'));
$this->Html->scriptStart(array('inline' => false));
?>
function changeImage() {
var path = document.getElementById("changeimg").src;
if (path.search("logo.png")) {
document.getElementById("changeimg").src = "<?php echo $this->webroot; ?>/img/logo_new.png";
} else {
document.getElementById("changeimg").src = "<?php echo $this->webroot; ?>/img/logo_small.png";
}
return false;
}
<?php
$this->Html->scriptEnd();
?>