"It is time PSV and I let one another go, but my coming leave of the club and the squad will touch me," Rutten told the Dutch newspaper De Volkskrant.
The 49-year-old coach joined PSV as manager in 2009 after spells at Twente Enschede and Schalke 04 Gelsenkirchen, while he previously worked for PSV as assistant to Guus Hiddink.
PSV have failed to win a trophy under Rutten but currently lie second in the Dutch league, one point behind AZ Alkmaar, and are still in the Europa League and Dutch cup.
PSV technical director Marcel Brands insisted he was not concerned that the early announcement of Rutten to leave the club will influence this season.
"Fred (Rutten) informed in November and he is professional enough, so I have no doubts about the remaining part of the season," Brands said.
Dutch media have reported that Hiddink, available since leaving the Turkish national team, and Dick Advocaat, coach of Russia, are among the candidates to succeed Rutten.
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