Wings general manager Ken Holland tells The Detroit News and the Detroit Free Press he met with the 47-year-old and Chelios wouldn't be offered another contract.
The Associated Press left a message for Holland Monday evening seeking comment.
Holland tells the News it was "kind of understood last summer" when Chelios signed a one-year deal that it would be his last.
Holland says Chelios wants to play another season and believes the veteran player can still play.
Detroit signed Chelios in 1999, and Holland calls him "just a perfect role model for young players."
He had no points and a plus-1 rating in 28 games this season.