Along with Huddersfield Town manager Lee Clark, Grayson has not applied for the vacant managerial position at the King Power Stadium and the Yorkshireman has affirmed his relationship with his current club.
Clark, meanwhile, remained cool on the idea of applying for the Leicester job. He had become a popular left-field option amongst fans after guiding Huddersfield to an unbeaten run exceeding forty games.
"I'm not applying for any job," said Clark speaking to BBC Leeds, "I'm a Huddersfield manager working for a fantastic man and a fantastic board. Whether it's just to fill areas in newspapers, I don't know, but there has certainly not been any contact with me or my representatives."
Both Grayson and Celtic manager Neil Lennon, who played under Martin O'Neill at Filbert Street, have given the Ulsterman their backing.
Grayson added: "I'd be very surprised if Martin O'Neill doesn’t accept the job if he's offered it."
Former Fox Steve Claridge - who scored at Wembley to take O'Neill's side into the Premier League in 1996 - added his thoughts and he also believes the job is their if the ex-Aston Villa boss desires it.
"It was always going to be the case that he would be mentioned," said Claridge, now a BBC pundit, "Whether or not Martin would want to go back I don’t know but I imagine if he did want the job it is there for the taking."
Rumours linking O'Neill with the post vacated by Sven Goran Eriksson on Monday night continue to circulate without concrete evidence from either O'Neill himself or the club. The Leicester Mercury, meanwhile, have suggested that the Swede was fired after Leicester City's Thai owners examined his form since joining the club a year ago.
Former Fox Steve Claridge - who scored at Wembley to take O'Neill's side into the Premier League in 1996 - added his thoughts and he also believes the job is their if the ex-Aston Villa boss desires it.
"It was always going to be the case that he would be mentioned," said Claridge, now a BBC pundit, "Whether or not Martin would want to go back I don’t know but I imagine if he did want the job it is there for the taking."
Rumours linking O'Neill with the post vacated by Sven Goran Eriksson on Monday night continue to circulate without concrete evidence from either O'Neill himself or the club. The Leicester Mercury, meanwhile, have suggested that the Swede was fired after Leicester City's Thai owners examined his form since joining the club a year ago.
And, with Eriksson failing to secure successive wins since February and with his side failing to come from behind in any game to win, only the 1-0 victory over Brighton & Hove Albion in mid-September saved Eriksson's job. Indifferent form since then led Vichai and Aiyawatt Raksriaksorn with little option but to relieve Eriksson of his postion.
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