"We have no hope any more of having a Formula One race here (this year)," Seiler told Bild newspaper. "We did everything in the last few years to keep the fans happy."
"We had declared ourselves willing to step in for Nuerburgring, something we were contractually not obliged to do," he said.
"There were talks with third parties over taking over the risk but they were not successful."
Hockenheim hosted last year's grand prix and is also due to host it in 2016, but the circuit has made heavy losses due to poor attendances and is unwilling to shoulder the burden for three years in a row.
The Nurburgring, one of the sport's most historic venues with the original track dating from the pre-World War Two years, also has financial troubles and has changed ownership since it last appeared on the calendar.
However attendances dwindled after Schumacher, who won five of his titles for Ferrari, retired in 2012 after an unsuccessful comeback with Mercedes.
Only 52,000 fans turned up on race day at Hockenheim last year to see Germany's Nico Rosberg win the race for Mercedes. The victory was the first by a German driver in a German car on home soil since the 1930s.