The Russians had offered Donald Trump Jr damaging information on Hillary Clinton at the June 2016 meeting.
Mr Bannon's quote appears in a new book by journalist Michael Wolff.
"Steve Bannon has nothing to do with me or my presidency. When he was fired, he not only lost his job, he lost his mind," Mr Trump said in a statement on Wednesday.
The Senate, House of Representatives and a special counsel are all investigating alleged Russian interference in the presidential election and alleged attempts to undermine Mrs Clinton - a claim denied by the Kremlin. Mr Trump has also vehemently denied any collusion.
Mrs Sanders described the book as "filled with false and misleading accounts from individuals who have no access or influence with the White House".
"Participating in a book that can only be described as a trashy tabloid fiction exposes their sad desperate attempts at relevancy".
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9:42 AM
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