Sane has been linked with a move away from the Etihad after failing to nail down a regular starting spot in Pep Guardiola's side last season due to the impressive form of the likes of Raheem Sterling and Bernardo Silva.
Bayern are keen to reinforce their options in wide areas this summer after Arjen Robben and Franck Ribery departed at the end of last season.
A move for Chelsea's Callum Hudson-Odoi looks unlikely with the Blues currently unable to register new players due to a ban from FIFA, and Goal reported last month that he is likely to sign a new £100,000-a-week contract at Stamford Bridge.
With the England international's future unclear, a deal for Sane could be more feasable, with chairman Karl-Heinz Rummenigge having said on Monday he is hopeful of finding an agreement with City.
And when asked if he would like to see the German play for Bayern at a press conference ahead of the Bavarians' return to training, Kovac said: "Yes. Full stop. Exclamation mark!
"He definitely could help us. You saw in the national team and at City what kind of qualities he has."
Bayern are also said to be chasing the signature of Barcelona forward Ousmane Dembele, who could leave Camp Nou this summer after failing to live up to his potential since a big-money move from Borussia Dortmund in 2017.
Former Barca midfielder Thiago hinted earlier this week he would like to see the 22-year-old join him at the Allianz Arena, and Kovac has now added fuel to the speculation after describing him as "a very good player".
Bayern are yet to bring in any big-name signings in forward areas this summer, despite having lost Franck Ribery, Arjen Robben and James Rodriguez after they opted not to make the Colombia international's loan from Real Madrid permanent.
And Kovac spoke out about the difficulties the Bundesliga champions are facing in the current market.
"We fight against states and billionaires. The players go to Abu Dhabi, Qatar, Dubai. They have much more money at their disposal than a club like FC Bayern," he said.