"It is no tragedy if there are new elections, although it is not the priority and no one desires it," he said in an interview published in Catalan nationalist newspaper El Punt Avui.
Puigdemont moved to Belgium after the Catalan parliament unilaterally declared independence on October 27 following a banned referendum on secession and faces arrest if he returns to Spain over his role in Catalonia's separatist push.
But Sanchez is considered to have little chance of taking up the post since he is remanded in custody pending accusations of sedition over last year's Catalan independence crisis.
On Friday, Spain's Supreme Court turned down his request to be released from jail to attend a crux parliamentary session on Monday where he was set to officially be appointed.
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The court's decision means it is unlikely that the Catalan assembly will convene, though parliamentary speaker Roger Torrent has yet to react.
"Since they did not like the outcome, they don't want parliament to pick its president... They are forcing things in such a way that maybe we should repeat elections," he added.
Prime Minister Mariano Rajoy's conservative government dissolved Catalonia's parliament, called the early election and imposed direct rule over the region after Catalonia's assembly on October 27 unilaterally declared independence.
Sanchez, the former leader of influential grassroots separatist organisation ANC, has the support of Catalonia's two main separatist parties, Puigdemont's Together for Catalonia and the leftist ERC.