Iraizoz joined Bilbao from Espanyol in the summer of 2007, and the 36-year-old has made 390 appearances for the Spanish club in all competitions.
The stopper has lost his spot in the first team in 2017, however, and Urrutia has confirmed that the Spaniard will be granted a free transfer at the end of the 2016-17 campaign.
"Next season Iraizoz will not continue with us," Urrutia told reporters. "I talked to him and thanked him for his behavior during these ten years. Next week we will probably give a press conference with Gorka Iraizoz."
Iraizoz has made 22 appearances for Bilbao in all competitions this season, but the stopper has not represented his Basque club since the start of March.