Sane did not even feature on the bench for the Premier League game and was not suffering from any injury but Guardiola said there was no issue with the player's approach.
"Last game Phil Foden was not in the squad and I was so sad for Phil like I am so sad for Leroy," said the Spaniard.
"But we have a squad and sometimes I have to leave (someone out) because we have six strikers and I decided to play with two strikers, two wingers and another one on the bench and so I decided this game for him not to be there.
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"He has to work hard again and (for the) next games be ready to play," he said.
Asked directly if he was happy with Sane's attitude, Guardiola said: "Yes. He played 10 minutes (at Wolves) and he tried. He was not precise but he tried.
"They know me I am satisfied when they run, they do everything, the mistakes with the football, the decisions, it is part of the process, no problem," he said.
"Leroy was so important last season and hopefully important for us this season."
Sane is one of the few members of the City squad who did not feature in the World Cup in Russia after he was surprisingly left out of the Germany squad.
The 22-year-old has, however, been called up for Germany's Nations League game against France on Sept. 6 and the friendly against Peru three days later.
(Reporting by Simon Evans, editing by Pritha Sarkar)
