The former Derby County and Leicester City manager is back in work... but not at Birmingham City.
The former Derby County boss was 12/1 to take over at Birmingham City on Wednesday.
It appears that Sunderland have relaunched their manager search, with the former man boss a leading candidate.
Middlesbrough are reportedly deciding between Garry Monk and Nigel Pearson to become their new manager.
David Moyes tried to sign Leicester City outcast Leonardo Ulloa for Sunderland in January - but Nigel Pearson could be key to any deal.
Preston North End's Grayson is leading the race to become Sunderland's next boss.
The former Swansea City man resigned from Leeds a few weeks ago, and is set to be interviewed along with Nigel Pearson.
Leeds United are once again searching for a new manager after Garry Monk's departure.
Former Hull City boss Nigel Pearson and David Moyes, whose departure from Sunderland was confirmed recently, are included in the running.
Nigel Pearson is one of the favourites to take over at Middlesbrough, with the North East club looking for a new manager.