The 36-year-old’s departure was expected ever since the Major League Soccer club were eliminated from the post-season play-offs just over a week ago.
It was confirmed by the Galaxy yesterday but Gerrard had been thinking about his next move for some time already.
“I am now looking forward to spending time with my family as I consider the next stage of my career,” he said after his 18-month deal ended.
“When I left Liverpool, I came to Los Angeles with the goal of helping the Galaxy lift another MLS Cup.
“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 play-off 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 scored five goals in 34 appearances but generally his time in California has not been viewed as particularly successful.
However, coach Bruce Arena paid tribute to the midfielder’s spell at the club.
“We were honoured to have a player and person of Steven’s calibre represent the LA Galaxy over the past two seasons,” he said.
“His experience, class and leadership made him a valuable member of this team both on and off the field.
“I will always remember his last kick for the LA Galaxy as he smashed home his penalty against Tim Howard.
“We thank Steven for his time and contributions to this club and we wish him the best in whatever comes next.
“He is one of the most iconic players of all time and he will always be a part of the LA Galaxy family.”
Gerrard has been linked to a return to Liverpool in a coaching capacity and also a reunion with former manager Brendan Rodgers at Scottish champions Celtic.
However, it is understood no decision has yet been taken on what the former England captain’s next career move will be.