Sanches has been struggling since his loan arrival from Bayern Munich.
Clement hopes his decision to drop Sanches can be the wake up call he needs to steer the Swans to safety.
He said: “He's not going back. He's been out of the last two squads, which is obviously not a good situation for Renato, he's not very happy about it, but his reaction is very good in training.
“I hope that the realisation of how he's played, the inconsistency, he can't expect to keep getting picked if he's not performing at the level.
“I have to think about the team first. Renato is a good player and I do believe he can make a contribution to us.
“But in order to do that he has to start playing to his potential and when he does that he will feature a lot more."