The Portugal international joined the Bavarian giants from Benfica last year amid much fanfare, but endured a frustrating debut season in Germany.
Sanches made just 25 appearances (nine of them starts) in all competitions for Bayern as they won a fifth straight league title and reached the Champions League semi-finals.
The 19-year-old midfielder admits he needs more game time and wants to achieve that with Carlo Ancelotti's side, but refused to rule out a move away from the Allianz Arena.
"In principle I will stay at Bayern," he told Record. "Of course Bayern Munich are a great club and I really enjoy being there.
"But if I do not stay at Bayern I will not be discouraged either. I will continue working as usual.
"Of course I need to play more, playing more gives me much more confidence. Let's see what happens."