Although Mercedes considered bringing Mick Schumacher into their junior programme, Toto Wolff says overcrowding made it impossible.
Earlier this year Ferrari signed Schumacher, the son of seven-time World Champion Michael, to their driver academy.
The German, who won last year’s European Formula 3 championship, continues to race in Formula 2 with Prema while dipping his toes into the Formula 1 world.
He was second fastest in his Ferrari test debut in Bahrain.
His decision to sign with Ferrari’s driver academy effectively closed the door to Mercedes, at least for now.
Wolff, though, says they had no option given that Mercedes is already having a hard time trying to find seats in F1 for its current crop of young drivers.
“Yes we had thought of it, but how could we?” the motorsport boss told La Gazzetta dello Sport.
“We are already struggling to find a seat in F1 for George Russell and [Esteban] Ocon.”
Wolff added that he expects it will be only a matter of time before Schumacher, who bagged his first F2 win in Hungary, enters Formula 1.
“Mick is a good boy, a character, he grew so much in F3 and F2, and I am sure that, when the time comes, he will do well also in F1.”