Rangers are on the hunt for a new manager following the departure of Pedro Caixinha from Ibrox, with Graeme Murty currently in charge of the Gers.
According to Sky Bet, former Middlesbrough boss Karanka is the third favourite for the Ibrox managerial role with odds of 7/1 in his favourite.
Former Rangers striker Gray, who was on the books of the Gers in 1988-89, has said that it is unlikely that the 44-year-old former Real Madrid assistant manager will be the new boss of the Scottish giants.
Gray told beIN SPORTS when asked about Karanka to Rangers speculation: “No, I can’t see that. Sorry, that’s not going to happen.”
Karanka is without a managerial job at the moment, having parted company with Middlesbrough in March 2017.
The Spaniard did a good job at Boro in England, and he would be a brilliant appointment for Rangers.
However, it is unlikely that Rangers will be able to secure the 44-year-old’s services due to wage issues.
The Gers are unlikely to win the Scottish Premiership title this season, but the Ibrox outfit should be aiming to finish second in the table.