It was suggested on Monday morning that Blues owner Roman Abramovich was considering bringing the Israeli back to Stamford Bridge as an adviser to interim manager Rafa Benitez.
Benitez has failed to win any of his first three games in charge after replacing Roberto Di Matteo and is struggling to win over the club's fans.
But a club spokesman said there was "no truth" in stories Grant - sacked by Chelsea after the 2008 UEFA Champions League final - would be asked to assist the former Liverpool boss.
Grant told Sky Sports before Chelsea's 3-1 defeat at West Ham on Saturday that Benitez needs time to resurrect the club's fortunes.
"It is not easy times for him," said Grant, who has been out of work since leaving Partizan Belgrade at the end of last season.
"It's been more difficult for him being outside the game. He was waiting for this. He's been too long out of the game and not coaching.
"He's not shy or a little boy. He knows what to expect, especially when he came to this club.
"The supporters don't like it so much, but Rafa knows he needs to win games and play good football and that's what's important."
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