RB Leipzig chief Ralf Rangnick effectively confirmed the forward's exit this summer in an interview with Doppelpass on German television station Sport1.
"Our position is that if he does not renew the contract, he should change clubs," he said.
"He would first have to agree with a club and this club would have to contact RB, which has not happened to my knowledge."
Only five days ago Red Bull Leipzig CEO Oliver Mintzlaff suggested Liverpool would be in any race to sign Werner as the striker may want to 'play under Jürgen Klopp'.
Mintzlaff told Sky Sports: "Last year we certainly didn’t play football like we did in the season before.