The second-tier points leader has been actively on the hunt for a main game drive for 2023, the search ramping up following his impressive Bathurst 1000 debut with Triple Eight in a Supercheap Auto-backed wildcard earlier this month.
He was in the frame at PremiAir Racing to potentially partner new signing Tim Slade, however the team is now expected to retain an in-form James Golding.
That left Fraser as the front-runner to end up at Matt Stone Racing alongside Jack Le Brocq, but, following talks with MSR, Fraser has opted to not pursue that seat.
That means he won't be on the main game grid next season.
"The process with MSR over the last month or so has been very positive," Fraser told Motorsport.com.
"I'm disappointed that I won't be on the grid in a full-time drive next year, but the negotiations have been an incredible learning curve. I try to take the positive out of everything and I've learned a lot.
"I have some terrific commercial partners but ultimately we couldn't meet MSR's expectations.
"Now my focus turns to Adelaide and looking at the options we have for 2023."
Fraser wouldn't speculate on what those other options may be, although its thought that both Triple Eight and Supercheap were impressed by his efforts in the wildcard entry.
Teams are set to be limited to a single sprint round wildcard next season, but will be able to also field additional entries at endurance events.
With the Sandown 500 set to be revived as a two-driver enduro, a wildcard programme could therefore include three hit-outs, two of them long-distance races.
MSR, meanwhile, is yet to announce who will take over the seat being vacated by Blanchard Racing Team-bound Todd Hazelwood at the end of the season.
Jayden Ojeda, who has raced for the team at the last two Bathurst 1000s, has long been considered a key contender for the drive.
Another name being increasingly linked to the seat is Cam Hill, who has raced in Super2 this season as Fraser's T8 teammate and made his Bathurst 1000 debut with PremiAir Racing earlier this month.
