The Israeli, who was manager following Jose Mourinho’s departure, was linked with a return as an aid to interim boss Rafa Benitez.
“There is no truth in reports that Avram Grant will be returning to the club,” a Chelsea spokeman said on Monday.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.