But the City boss suggested it could still be a while until he is back in contention for first-team football.
Sane has been sidelined since August after damaging the anterior cruciate ligament in his right knee during the early stages of our Community Shield win over Liverpool at Wembley.
But after four months out, he returned to the training pitches at the CFA on Monday to step up his recovery, completing a pitch session in isolation.
Guardiola says it was the next phase of his recovery and admits it will be a huge boost when the winger returns to match action.
“That was the next step, to go to pitch,” Guardiola said. “Then he will train with us and then full sessions.
“That [him being back to full fitness] would be great for us.”
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Ahead of Wednesday’s Carabao Cup quarter-final against Oxford, Guardiola says he feels well prepared for the game at the Kassam Stadium.
City beat the League One side en route to winning last season’s Carabao Cup triumph and the boss believes their style has remained largely the same.
The Catalan also reaffirmed his desire to win the competition for the third time in succession.
“They have the same manager but they have changed a little bit,” he said. “They are quite similar in attack and it was one game away, anything can happen. We will try to go there and win.
“It’s important because we won the last two Carabao Cups. We are in the quarter-final, so we have a chance for a semi-final again.
“We travel tomorrow to Oxford. We played them last season and we will try to qualify for the next round.”