Ahead of Saturday's clash with Fulham., Howe was asked about reports of the Italy midfielder's contract being quietly extended to 2029.
Howe recalled: "That is correct. A lot happened the time when he was banned. A lot of discussions between Sandro's representatives and the football club at the time.
"There was the contract situation with the sacrificial money Sandro volunteered which spoke volumes of his character. How he conducted himself around that time was brilliant and he has been brilliant since he come back.
"It is a two way thing. Sandro has felt the love from everyone connected to the club. That support helped him with his return to football too and he needed at that time and now we are seeing the benefits on the pitch. It is easy to forget everything he went through at that time."
He continued: "Every situation is different. Sandro is happy, enjoying his football and feels integral to the squad. You can never foresee what the future holds but we are enjoying his quality and long may that continue.
"I think it is dangerous to label players (as one of the best in the world) but the attributes and attitude are there to be that. Sandro has all those qualities, the technical delivery, the quality, he has a bit of everything but the challenge is to improve and show that consistently."
On Tonali making the match with the Cottagers, Howe added: "Sandro is still the player we are monitoring. He did train on Wednesday but didn't feel 100% so he is the one that is probably touch and go for the game."
Right attitude needed against Fulham
Meanwhile, on facing Fulham, Howe concedes they must improve their domestic form after a superb Champions League win against Benfica midweek.
He said, "It is down to mentality and attitude. There is no difference between a Premier League game or a pre-season game. Our attitude has to be the same.
"Our attitude was very good against Benfica in the Champions League and we have to back that up now against Fulham on Saturday.
"Last year we had two disappointing results against Fulham and these are difficult games for us returning from the Champions League and the high emotions those games give you. It is a big mental challenge we have to rise to and grow from the experiences."
Ramsey has made us better
Howe, beyond Tonali, was also keen to talk up the impact of deadline day arrival Jacob Ramsey. The former Aston Villa midfielder, after arriving injured, quickly finding his feet at St James' Park.
The manager stated: "Really pleased for JJ because the last thing you want to do is pick up an injury at a new club. He has worked hard, got back to full fitness and I have been impressed but I think the best is yet to come.
"It is massive for us to have players who can come in and make the team play better. That is crucial for us. We need the depth and we arguably didn't have that two years ago and it speaks volumes to their professionalism that they came in and performed how they did. It gives me a new dynamic when selecting the team for the next game."
Leave it to Slot
Before signing off, Howe was asked about a swipe from Liverpool rival Arne Slot during the week.
After Alexander Isak suffered a groin injury in Liverpool's Champions League win at Eintracht Frankfurt, Slot branded Newcastle a "smaller club" when highlighting Isak hadn't done preseason with the Mags before his move.
Howe responded this morning, stating: "I don't think it is wise for me to get involved in those discussions.
"Alex is no longer at this football club. It is best to stay away from it.
"The set-up is here is very good. It is not perfect, there are things to improve and grow.
"The owners here have developed the facilities and you can see there is building work going on. Hopefully that will help us be even better in the future. But I have no complaints, we have elite athletes here, many of them, touch wood they are managing pretty well."