The California governor will make only a cameo appearance in the next sequel, reported The Guardian.
Claire Danes and Nick Stahl, Schwarzenegger's two co-stars from the poorly received "Terminator 3: Rise of the Machines", have been dropped entirely from the forthcoming project.
"None of the cast is coming back," Sci-Fi Wire quoted Nick Stahl as saying. The actor, who played John Connor in the third film, said: "The story is changing conceptually.
"I believe it's a jump to the future, so my character will be quite a bit older."
The last film ended with Stahl set to unite the survivors of Armageddon in a bid to ensure the survival of mankind.
"Titanic" director James Cameron made the first "Terminator" movie in 1984 and released its sequel "Terminator 2: Judgment Day" in 1991.