Mlambo failed to make Baxter's Bafana Bafana squad again for back-to-back 2019 African Nations Cup qualifiers with Seychelles despite his stellar form in midfield for Pirates this season.
The 27-year-old's ability to find a defence-splitting pass was something that could have come in use in Bafana's previous disappointing goalless draw with Libya in Durban on September 8.
However, Sredojevic impored the nation to respect Baxter's choices.
The former Rwanda and Uganda coach can appreciate the difficulties Baxter faces based on his experiences in international football.
Asked about the snub, Sredojevic said: "Having been a national team coach I know about 40 million Ugandans asking me why this and that one is not in the team.
"I have the highest degree of respect for our colleague ... Stuart Baxter.
"It is his own opinion, his own responsibility.
"We can only motivate the players to perform and try to convince the coach to call them. There, our powers are finished.
"Otherwise pointing the finger this way you are at the wrong end," concluded the Serbian.
Baxter has explained his reasons for omitting Mlambo.