The former Liverpool captain, who moved Stateside in the summer of 2015, will leave the Galaxy following the expiration of his two-year contract.
“When I left Liverpool, I came to Los Angeles with the goal of helping the Galaxy lift another MLS Cup,” said Gerrard.
“I am of course disappointed to have not achieved that objective, but I can look back at my time at the club with pride at what we accomplished, including two straight playoff appearances and countless memorable moments on the pitch.
“As someone who spent the whole of their career in Liverpool, it has been an incredible experience to come to Los Angeles and play for the LA Galaxy.”
Gerrard, who recently hinted the departure on social media, scored five goals in 34 appearances during his 18-month stint with the MLS club.
The 36-year-old midfielder will now consider his options as he plans the next stage of his career. Gerrard has previously made no secret of his desire to return to Liverpool in some capacity and has trained with his former club over the past year.
In May, Gerrard admitted he would return to his boyhood club "sooner rather than later" during a Q&A session with a group of the Galaxy's supporters.
"I will be going home at some point," he said. "I don't want to start any unnecessary rumours. I'm really happy where I am at the moment. But I'm sure somewhere down the line I will represent Liverpool Football Club.”