The 33-year-old goaltender has struggled in limited action this season, going 0-4-1 with an .852 save percentage in six games. He's been outplayed by 22-year-old Mackenzie Blackwood, who's posted a 7-4-3 record and a .904 save percentage in 14 contests.
New Jersey will save nearly $800,000 against the cap if Schneider stays in the AHL for the rest of this season but will continue to pay him his full $6-million salary, according to CapFriendly. The veteran carries a cap hit of $6 million through 2021-22.
Schneider played eight games for Binghamton during the 2018-19 campaign, in addition to 26 NHL contests.
The Devils acquired the netminder from the Vancouver Canucks in exchange for the ninth overall pick of the 2013 NHL Draft, which the Canucks used to select forward Bo Horvat.