Ibrox chiefs, who have been in talks with former Liverpool and England midfielder Gerrard for the past week, say they hope to be able to release details about Murty's successor "in the near future".
They say sources close to Gerrard have told them that he is viewing a potential stint at Rangers as the ideal stepping stone to one day succeeding Jurgen Klopp at Liverpool.
So why on earth would Gerrard want the job?
"Yeah there is truth in the rumours".
Kim Kardashian Reveals The Status Of Khloe Kardashian And Tristan Thompson's Relationship
We're guessing she's talking about the cheating scandal and the alleged drug use that eventually surfaced. How you treat others says most about you.
After a brief stint as coach of Liverpool's under 18 side Gerrard has been offered the chance to manage one of the biggest clubs in Scotland, as Rangers look to challenge Celtic's dominance in the SPL.
Steven Gerrard has revealed that he is interested in taking his first job in senior management with Rangers after holding discussions with the Scottish club.
That prospect is clearly some distance off, with the decision to hire Portuguese Pedro Caixinha as manager 14 months ago contributing to a season of chaos. Allen has begun work to rectify that.
Rangers are third in the Premiership table, with only goal difference separating them from fourth-placed Hibernian.
Previously the Gers' under-20s coach, Murty had come in for some harsh criticism in recent weeks, particularly after the weekend's defeat to Celtic, as well as a similarly bad result against the same opponents in the Scottish Cup semi-final.