A geothermal liner system with packer for sealing a producing zone within a wellbore has a mandrel placed in an interior of the wellbore, a packer releasably affixed around an outer surface of the mandrel, and a sleeve positioned adjacent an end of the mandrel. The liner system is generally tubular and may include joint casings and a mandrel, all being tubular-shaped. The packer is expandable upon exposure to wellbore conditions. The sleeve has perforations in a wall thereof. The mandrel is slidable relative to the packer when the packer expands against the wellbore. The sleeve is selectively controlled to manage production from sealed wellbore zones. The system is stabilized through various wellbore conditions, such as geothermal heat, by being adjustable for thermal expansion of parts of the system.