Change a status to be inactive to stop the contact status option from appearing in drop down lists.
Go to: Settings > Contact lists > Contact status, and use one of the following methods: Single row - Click the row action button and select 'edit'. Uncheck the 'active' box, and then save and close. Multi row - In the list check the box(es) on the left of the name column, and then click the multi rows action button . Choose 'set as not active' option.
The list refreshes and only the active items remain in the list.
Tips:
A strike-out style is applied to all the rows that are inactive.
Use the list filters 'all' or 'inactive' to find the inactive contact status options.