"It's unfortunate but not surprising, especially as the date was only conditional", Hockenheimring chief Georg Seiler was quoted as saying by German news agency dpa.
"There was no offer in which all financial risks were eliminated, which was always our condition to stay as a possible venue", he told the German publication.
The event was one of three to feature the infamous "to be confirmed" asterisk when the provisional calendar was unveiled last month, and while Canada and Brazil now look likely to be on the final schedule released next week Germany looks highly unlikely.
The boss of the Hockenheim circuit has confirmed there will be no German Grand Prix in 2017 after talks with Formula One boss Bernie Ecclestone broke down.
Next July would have been the turn of the Nurburgring circuit under an alternation agreement but its owners have baulked at paying the hosting fees due.
The Hockenheimring has hosted the German Grand Prix 76 times.
A full and official calendar is expected to be announced on November 30. "I'll put my money on it not happening".
In 2015, despite Mercedes winning the 2014 constructors' title and driver Lewis Hamilton winning the drivers', and both looking set to repeat the feat, Germany was missing from the calendar for the first time since 1960.
Championship leader Rosberg, who was born in Wiesbaden, will become Germany's third world champion after Michael Schumacher and Sebastian Vettel if the Mercedes driver finishes on the podium in this weekend's Abu Dhabi season-ender.
But attendances have dwindled and only 57,000 fans attended this year's race, below the levels required to break even.