Ralf Schumacher claims Christian Horner should 'resign as soon as possible' from his role as team principal at Red Bull.
Schumacher says the 50-year-old has 'portrayed himself as a victim' following an independent investigation into the F1 chief.
Horner was accused by a female colleague at Red Bull of inappropriate behaviour, allegations that he always denied.
He was cleared of any wrongdoing and has continued in his role as usual for the first two races of the 2024 season.
Christian Horner has been told to resign by Ralf Schumacher
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Red Bull have again had a great start to the campaign, with Max Verstappen and Sergio Perez recording 1-2 finishes at the Bahrain and Saudi Arabian Grand Prix.
But the saga surrounding their team principal has created a cloud over the opening weeks.
The female employee, who was reportedly suspended by Red Bull earlier this month, is set to appeal the outcome of the investigation.
Horner called for a line to be drawn under the story ahead of the race in Saudi Arabia.
Former F1 driver Schumacher says it is not good a look for the sport that the Horner case continues to rumble on.
He says his opinion on the matter changed when Horner spoke to the media in Saudi Arabia.
Schumacher told Sport1: "What I found and still think is a shame: the Christian Horner case outshines everything.
"This became particularly clear on the first weekend in Bahrain. It wasn't until race day that there was a little talk about the sport.
"What also bothers me about the whole thing: An objective assessment is extremely difficult because there is a complete lack of transparency.
"It became problematic for me when he portrayed himself as a victim in the press conference in Saudi Arabia.
"I’m sorry for his family, yes, but there was only one person who started this whole thing: him."
Schumacher understands that Horner does not want to go into the fine details of the investigation.
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Christian Horner has continued in his role at Red Bull
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But he believes it has got to a point where it will cause 'intense damage to Red Bull' if he doesn't resign.
Schumacher added: "I can’t accept that he keeps saying he doesn’t want to talk about it in detail.
"I can say from my own experience when it comes to my divorce: Yes, it is difficult at the beginning when such a private matter is carried out in public.
"But there comes a time when we have to talk about it because in the end, it’s what’s best for all parties.
Christian Horner has been Red Bull team principal since 2005
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"For example, you don’t hear anything from Horner’s employee and that’s not good. Nobody talks about her.
"One thing is certain: As long as this chaos remains, it will do immense damage to Red Bull.
"Horner said that no one is more important than the team. Therefore, he should follow this command and resign as soon as possible."