The former England midfielder will leave Al Ettifaq in 12th place, having won two of his last 14 Saudi Pro League matches in charge.
Gerrard has previously managed Premier League club Aston Villa and Scottish giants Rangers.
He won his first managerial honour with the Gers, claiming the Premiership title in the 2020/21 season.
It has been reported that Gerrard and Al Ettifaq will part ways by 'mutual agreement'.
Gerrard's assistant, Michael Beale, who he worked with at Rangers, is also expected to leave the club.
Former Liverpool captain Jordan Henderson was signed by Gerrard's Al Ettifaq in the summer of 2023.
The 34-year-old midfielder left the Saudi club just six months later - by 'mutual agreement' - to join Ajax in the Netherlands.
Henderson's Liverpool teammate Gini Wijnaldum still plays for Al Ettifaq, as does former Everton man Demarai Gray.