Swansea swooped for the 20-year-old during the summer, but he has only started seven Premier League matches for the Swans during the 2017-18 campaign.
The Portugal international has only made one substitute appearance for the Welsh club, meanwhile, since being hauled off during the clash with Chelsea at the end of last month.
Clement has denied suggestions that Sanches will return to Bayern in January, but has admitted that he wants to see a lot more from a player who has previously been linked with Manchester United.
"He's been out of the last two squads which isn't a good situation for Renato; he's not very happy about it. But his reaction is very good in training, he's very motivated and knows what he needs to do," Clement told reporters.
"I haven't had any communication with Bayern about Renato's current situation. I believe it's come out of a news source in Portugal, so it's just speculation nothing more than that.
"Contractually he's signed for us for the season and there were no stipulations about how many games he has to play for us. As for as I know he's a player here for us for the season.
"You can't expect to keep getting picked if you're not performing. Renato is a very good player and I believe he can make a contribution for us, but in order for him to do that he needs to start playing up to his potential and when he does that he'll feature a lot more."
Sanches has not scored a goal or registered an assist in 512 minutes of Premier League football this term.