Prior to his one season at Fresno, Steinauer had spent his entire coaching career in the CFL, including a four-year stint as the defensive coordinator for Hamilton from 2013-16.
Former Ohio State offensive coordinator and line caoch Ed Warinner, brought in an offensive analyst, would be the obvious choice to replace Drevno as line coach.
Changes continue for the MI football coaching staff.
Drevno came under heavy criticism last season as the Wolverines finished 91st in the country in points per game (25.2) and 105th in yards per game (349).
But things went backwards in 2017.
MI averaged just 348.9 yards per game, a figure that ranked 105th nationally, and allowed 36 sacks on its quarterbacks. Harbaugh recently said he expected no further changes to his staff. He was a long-time assistant under head coach Jim Harbaugh dating back to 2004 at the University of San Diego.
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Drevno's resignation comes after MI head coach Jim Harbaugh announced the hiring of Jim McElwain as wide receivers coach February 20.
ESPN's Chris Low reported that McElwain will be involved in developing the weekly game plans and coordinating the offense of the team.
Drevno was in the second year of a five-year contract that paid him $1 million annually.
Prior to Michigan, Drevno coached alongside Harbaugh at both the National Football League and college levels.
In this handout image provided by the NFL, Tim Drevno of the San Francisco 49ers poses for his NFL headshot circa 2011 in San Francisco, California. According to terms of his contract, he may be required to pay MI $150,000.