Just like Sir Alex Ferguson, Gray does not possess the necessary coaching qualifications required to manage at Premiership level.
He was therefore given three-month's by the Premier League to be in charge at Elland Road when Peter Reid was sacked last November.
Trevor Birch, however, worked behind the scenes to resolve the situation, with Gray saying: "I'm delighted and I'm looking forward to it.
"A lot of doubt has been removed and now we just need to get on with it and try to get some results."
Birch confirmed: "I am also pleased to be able to announce Eddie will remain as caretaker manager until the end of the current season after receiving the agreement of the Premier League board to a further extension."