diff --git a/changelogs/fragments/ovirt_fix_issue_in_resseting_sd_lease.yaml b/changelogs/fragments/ovirt_fix_issue_in_resseting_sd_lease.yaml
new file mode 100644
index 00000000000..549b0bc2540
--- /dev/null
+++ b/changelogs/fragments/ovirt_fix_issue_in_resseting_sd_lease.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+  - Fix issue in resetting the storage domain lease in ovirt_vm module.
diff --git a/lib/ansible/modules/cloud/ovirt/ovirt_vm.py b/lib/ansible/modules/cloud/ovirt/ovirt_vm.py
index 247051b50da..4afd92bec71 100644
--- a/lib/ansible/modules/cloud/ovirt/ovirt_vm.py
+++ b/lib/ansible/modules/cloud/ovirt/ovirt_vm.py
@@ -262,7 +262,7 @@ options:
         version_added: "2.5"
     lease:
         description:
-            - Name of the storage domain this virtual machine lease reside on.
+            - Name of the storage domain this virtual machine lease reside on. Pass an empty string to remove the lease.
             - NOTE - Supported since oVirt 4.1.
         version_added: "2.4"
     custom_compatibility_version:
@@ -1296,7 +1296,7 @@ class VmsModule(BaseModule):
                     id=get_id_by_name(
                         service=self._connection.system_service().storage_domains_service(),
                         name=self.param('lease')
-                    )
+                    ) if self.param('lease') else None
                 )
             ) if self.param('lease') is not None else None,
             cpu=otypes.Cpu(