Mercedes team principal Toto Wolff believes Mick Schumacher "fits" with the team but insisted a deal to add the German to its roster is far from done.
Schumacher has been dropped by Haas for next season in favour of Nico Hulkenberg, who joins from a three-year stint as Aston Martin's reserve driver.
But with Mercedes lacking a reserve driver after the departures of Stoffel Vandoorne and Nyck de Vries, Schumacher has emerged as a leading contender to fill the void.
Schumacher's father Michael ended his career with a three-year comeback stint with the Silver Arrows between 2010 and 2012, and Wolff has confirmed interest in the German's services.
"Mick is someone who has always been close to our heart because of Michael and the whole Schumacher family," said Wolff. "Ralf was in the DTM for a long time for us and his son [David] races in GTs.
"He is an intelligent, well-mannered young man, he has been very successful in the junior formulas.
"We believe we can look after him if the situation were to happen and with someone that just fits the team.
"But we haven't put pen to paper and we haven't come anywhere close to any terms.
"I am saying that openly because I think he just fits and now we need to make it happen if he wants to and Sabine [Kehm, manager] wants to, and we see where it goes to."
Wolff proud of de Vries and Vandoorne moves
De Vries and Vandoorne have now both left Mercedes to find pastures new after the team's Formula E entry was acquired by McLaren.
The duo secured championships in the all-electric series, but after the change in ownership de Vries has made the move to AlphaTauri whilst Vandoorne fills the Aston Martin reserve role alongside Felipe Drugovich.
"I am really proud that Nyck made it into a real F1 seat even though he is changing family," conceded Wolff.
"He deserves to be in F1 and it shows also that winning the world championship in Formula E for us and being a reserve was right for him and right for us, and Stoffel the same.
"They have flown away to be with someone else."