A report in The Telegraph states that his chances of securing the job permanently have been spoiled by a regulation introduced by managers this season calling for all those operating in the top flight to possess a management diploma or an equivalent professional licence.
In spite of his vast experience in the game — he has managed at Rotherham United and Hull City, as well at Leeds in the 80's — Gray has neither qualification.
Leeds appealed for special dispensation, which was passed at a meeting last Friday, for Gray to hold the position for a maximum of three months or until Reid's successor is found.
“There was a problem regarding the coaching diploma but we have given Leeds special dispensation for a certain period of time,” a spokesman for the Premier League confirmed.
William Hill have closed their book on the next Leeds manager after a sustained gamble on Southampton's Gordon Strachan reduced his odds from 2-1 to 1-2.
John Barnwell, chief executive of the League Managers' Association, confirmed that Gray is ineligible to fill the vacancy.