According to reports from the Scottish Sun, the 25-year-old has agreed to leave on loan for the rest of the season. He will link up with Stuart McCall, the former Rangers player and manager, at Scunthorpe United.
Alnwick has dropped down the pecking order at the Gers behind Allan McGregor and Wes Foderingham, and a loan away from Ibrox looks like a wise decision.
The goalkeeper joined the Gers in January 2017 from Port Vale, and managed just 11 appearances for the club.
The report claims that Gerrard has sanctioned his loan move and the player will spend the entire 2018-19 campaign in League One. He is expected to complete his move in the next 24 hours.
McCall was hired by Scunthorpe on Monday and Alnwick looks set to become his first signing at Glanford Park.
McGregor is clearly the first choice for Gerrard, while Foderingham has been recently used in the cup game. Barring injuries, Alnwick would have struggled to get regular games at Ibrox, and thus a loan move suits all parties involved.