"I know that we're going to treat him with as much respect as we possibly can here and give him a little leeway to kind of find his way in terms of what he wants to do," Schneider said during a radio interview with 710 ESPN Seattle. "But I'm under the impression that he's leaning toward retirement."
Schneider backtracked slightly on his comments in a later interview with KJR-AM.
"I really, honestly don't know at this point," Schneider said. "If you put a gun to my head, I would say he is leaning toward retirement. But I think with Marshawn you never really know. He's a fierce competitor. We just have to handle it the right way in terms of showing him as much respect as we possibly can for everything he's done for this organization."
Lynch struggled through an injury-plagued year with a hamstring issue and then abdominal surgery, playing in only seven regular-season games. He finished with just 417 rushing yards on 111 carries.
The 29-year-old Lynch returned for the NFC divisional playoff game last weekend against Carolina but had little impact during the Seahawks' 31-24 loss to the Panthers.
The five-time Pro Bowler would cost the Seahawks $11.5 million against their salary cap in 2016. By releasing him, Seattle would save $6.5 million against the cap.
According to ProFootballTalk.com, Lynch will owe the Seahawks $5 million from his signing bonus if he retires.
With Lynch sidelined for much of the 2015 season, second-year running back Thomas Rawls stepped in and was a surprise contributor. He rushed for 830 yards, averaging 5.6 yards per carry, before breaking an ankle during a Dec. 13 game against the Baltimore Ravens.