The MLS outfit have confirmed they have turned down the option to re-sign the 26-year-old for the 2014 campaign, but have not completely closed the door on the player.
Driver, who has been linked with a switch to English Championship side Burnley, initially moved to America in February on loan from cash-strapped Hearts before making the deal permanent in the summer.
The forward made 26 appearances and helped Houston reach the MLS Cup semi-finals, but he recently admitted that salary cap rules could force him to seek a new employer.
Dynamo President Chris Canetti said: “There are three players whose options we declined, which would be Cam Weaver, Andrew Driver and Mike Chabala.
“It doesn’t mean that the three of them won’t come back, but it means they also have options to go other places and it means their contractual status with us is uncertain.
“So we’ll see what happens with those five guys and deal with it as it goes forward.”