Grayson who yesterday refused to deny his interest in the Yorkshire club whilst attending a signing day at Bloomfield Road was later reported to have told the club of his wish to join Leeds.
Chairman Karl Oyston initially refused Leeds permission to talk to Grayson and after Grayson had formerly handed his resignation to the club this morning Blackpool refused to accept it.
The club issued a statement stating that they are now considering whether to take legal action against both Simon and Leeds United.