Schumacher had been repeatedly criticised by Steiner throughout the season for the quantity of his crashes, and the team have publicly discussed potential replacements including Daniel Ricciardo.
Video of Mick Schumacher's F1 future – STAY or GO?
German newspaper Bild now reports that Haas and Schumacher never entered into serious negotiations about a new contract at any point.
Schumacher’s impending exit was an open secret in the paddock at the F1 Brazilian Grand Prix, the penultimate race of the season, even though the driver had not been told, the report says.
The son of Michael Schumacher was finally informed by Steiner that he wouldn’t be kept on for 2023 on the Wednesday prior to the Abu Dhabi Grand Prix, the last race of the season, in the lobby of the Rotana Resort hotel, the report also states.
Mercedes are an option for Schumacher in 2023. They have a vacancy for a third driver as back-up to Lewis Hamilton and George Russell which would keep Schumacher in the public eye ahead of a potential return to the grid in 2024.