Ray has joined as coach, forming a management team with caretaker manager Rob Kelly and assistant manager Mike Stowell.
Since leaving Walsall Graydon has taken charge of Bristol Rovers as well as having a coaching position in Shanghai with Howard Wilkinson.
Leicester boss Rob Kelly has said "Ray knows the game and is very experienced. His role will be to help us in any way we need and I am sure he will be a valuable addition." Rob Kelly has the caretakers job at the Walkers Stadium until the end of the season and Graydon will help out for that duration.
We wish Ray well and he joins up with former Walsall striker Matty Fryatt.