He also called on the Spanish government to "respect democracy" and global treaties in its treatment of the region and its politicians.
Catalonia continues to be within an political deadlock significantly more than 5 months after Mr. Rajoy ousted Mr. Puigdemont's administration and placed that the place under direct principle by Madrid.
Xavier Garcia-Albiol says that the decision not to extradite Puigdemont on rebellion could hurt the "confidence" Spaniards have in "European institutions".
A jailed Catalan pro-independence activist was on Saturday proposed as the new regional president for a second time despite a failed first attempt. "He keeps his rights as a deputy and to be (regional) president", said Puigdemont at a news conference in Berlin on Saturday.
Separatists in Catalonia's regional parliament already tried to elect Sanchez as regional chief but their efforts were blocked by a judge last month.
The court ruled earlier Thursday that Puigdemont can be released on bail pending a decision on his extradition to Spain, saying the most serious accusation he faces there isn't punishable under German law. He can still be extradited on misuse of funds charges.
On March 23, Spanish Supreme Court Judge Pablo Llarena initiated a European arrest warrant for 25 Catalan politicians, including Puigdemont, regarding the illegitimate Catalan independence referendum of 2017.
He has been living in Belgium since fleeing Spain to escape arrest, and has been held at a prison in Neumuenster.
Germany's justice minister has applauded a court's decision to free former Catalonian leader Carles Puigdemont on bail, two weeks after his arrest in Germany.
"We feel that comments on judges' decisions at this point are not appropriate", he told reporters in the southern Spanish city of Seville.
The Spanish government accuses him of "rebellion" and misuse of public funds for organizing an illegal independence referendum in Catalonia in October. The German court said it will consider his extradition on that count.
He also said that Spain must "comply with United Nations resolutions" and release political prisoners, alluding to several Catalan separatist politicians who were imprisoned after unilaterally declaring Catalonia's independence from Spain a year ago.