Loud ticking noise

Hi everyone,
I have a 350 mpi mercruiser in my sundeck. Today, I was cruising at about 3500 rpms. When I slowed, I heard a loud ticking noise coming from the motor. I stopped and brought it to idle. I opened the hatch and saw that there was some water dripping from the side of the motor. The motor was not over heating and no alarms. All the readings looked normal. Any idea what it could be? Thanks.

Sorry guys, this should go in to the gas motor thread. Unsure how to switch it.

Exhaust manifold to cylinder head gasket blown