Former Weymouth boss Garry Hill has had a change of heart and will not be joining Grays as director of football.
Hill was sacked by Weymouth as part of a cost-cutting review
Grays had announced on Tuesday that Hill would work there on a non-contract basis until the end of the season.
"Garry wants to be a manager - he didn't want this to jeopardise any positions which might come up," chairman Mick Woodward told BBC Essex.
"I can't offer him the manager's job here because Justin Edinburgh is my manager and he's doing a great job."
Former Tottenham defender Edinburgh is the Conference club's fourth manager of the season.
He added: "But I am looking for a director of football to ease some of the pressure on me.
"If the right person comes along then I'll be appointing them. But I would like to thank Garry for taking the time to talk to us."
Meanwhile, Grays have signed ex-Reading striker Pierre Joseph-Dubois, 18.
They have also recalled left-sided player Mark Wright from his loan spell at Crawley Town.