Former Rangers boss Beale has been out of work since being sacked by Sunderland in February.
Gerrard has been under increasing pressure at the Saudi Pro League club after a dismal start to the season.
The Liverpool legend clung on to his £15million-a-year job, being one of the highest paid managers in the world, but has made changes to his staff.
Assistant manager Dean Holden and sporting director Mark Allen both left the club by mutual consent.
Beale, who is a former Chelsea and Liverpool coach, has now come in as a replacement for Holden.
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The 44-year-old lasted just 12 matches at at Sunderland before being axed earlier this year.
talkSPORT understands Beale lost the dressing room, with the Sunderland players particularly unhappy at being made to do extra training after a defeat, while the manager himself took the day off.
Al-Ettifaq are sitting 12th out of the 18 teams in the Saudi Pro League. They have lost five of their ten league games this season, suffering four defeats in their last five matches.
Ex-England skipper Gerrard was booed by his own fans after losing 2-0 to local rivals Al Qadsiah earlier this month.
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Gerrard took charge of the Saudi-based club in July 2023. The former Liverpool captain's current contract runs until 2027.
In Gerrard's first season in charge, he guided the club to finish sixth in the Saudi Pro League. They sat 48 points behind league winners Al Hilal.
Before moving to the Middle East, Gerrard had been out of work since he was sacked by Villa.
In October 2022 he was dismissed after a 3-0 loss to Fulham extended his side's form of only winning twice in the league that season.
Gerrard enjoyed better success at Rangers having guided them to a first Scottish Premiership in ten years in the 2020/21 season.
The triumph prevented Rangers' bitter rivals Celtic from securing ten league titles in a row.
Gers also enjoyed success in Europe, with the team going on to reach the Europa League final in May 2022 - six months after he left.