Current reserve driver Nyck de Vries has got a F1 drive next season with AlphaTauri and will be replacing Pierre Gasly who is on his way to join Alpine to the 2023 season.
As things now stand at Mercedes, they will be in the hunt to find a driver to take up the vacant reserve seat as support for George Russell and Lewis Hamilton.
Ricciardo has been dropped by McLaren for next season but would still like to be active in the sport, while deciding on his long-term F1 future, and by taking up a reserve driver seat will certainly keep him active.
The Australian has been strongly linked to Mercedes via the media, but Wolff said no final decision has been made yet over Ricciardo or anyone else.
"Daniel is speaking to a few teams about a potential role, also Red Bull," Wolff said.
"For us, we very much like him, he's a great character, but we are not in a position to decide who's going to be the third driver."
Wolff hinted that the experience of Ricciardo could makes him a useful choice in the reserve driver position.
"Personality, and he's been around for a long time.
"He knows these cars inside out and that can be really advantageous.
"But I don't want to put any rumours out there because we haven't decided," Wolff said.