The Spaniard was speaking after his side's 1-0 friendly loss to his former club Bayern Munich at the Allianz Arena, his first game in charge of the English club.
"There is a difference between Manchester City and Schalke and it is quite big. I do not know what is going to happen but right now he is with Schalke," he said of the 20-year-old Sane, who was in the Germany squad at the Euro 2016.
Schalke 04 sporting director Christian Heidel Winger has confirmed Sane has asked the club for a transfer.
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Sane scored eight league goals and grabbed six assists for Schalke last season as the Bundesliga club finished fifth in the standings.
(Reporting by Ian Rodricks in Bengaluru; Editing by Amlan Chakraborty)
