"The team management, the selection committee and the West Indies Cricket Board are concerned about Mr. Sarwan's extremely indifferent attitude and sporadic approach towards fitness, particularly in recent years," said a statement released by the board.
Injuries have kept the 30-year-old Sarwan, who has a test average of 41.73, out of test action throughout 2010.
"Ramnaresh's less than satisfactory and fluctuating fitness levels have directly contributed to multiple injuries thereby causing him to be unavailable for selection to the West Indies team," the statement added.
Chief selector Clyde Butts said that the absence of a contract did not have a direct impact on team selection.
"He is a world-class batsman and our view is that had he been in better shape over the years he would have had even more runs," Butts said.
Sarwan was not immediately available for comment.
The lack of a relatively modest paying contract does not carry a large financial implication for players such as Sarwan who have several endorsement deals but the decision is clearly intended to send a warning to the Guyanese batsman and others.
"The message is that it is not business as usual. The board has taken a stand where we want to see the players improve in their standards including their fitness," Butts said.