Gray resigned less than a week before the Labour government was due to mark 100 days in office, after becoming embroiled in a political storm at the heart of Downing Street.
Gray will be replaced by Morgan McSweeney, the party's election guru with whom she is said to have found herself at odds in government.
While a number of senior Labour figures had downplayed the friction some insiders for a failure to avoid and control the controversy over freebies, with some claiming she lacked "political experience", even though she was credited for knowing exactly how the civil service worked.
Some insiders have expressed disappointment that the leakers who briefed against Gray had "won" the battle inside No 10, with McSweeney replacing her as chief of staff.
Some cabinet ministers had defended her, saying the "appalling" briefings must stop or risk undermining the government. However, colleagues had still accused her of creating a "bottleneck" within No 10 that had delayed policy decisions and appointments.
Gray, a former senior civil servant who led the official report into the Partygate scandal, is expected to receive a peerage as she embarks on a new role as the prime minister's envoy to the nations and regions.
The Guardian understands that Gray is expected to receive a peerage with her new role.
It is not yet clear whether the envoy position will be paid or not.
Gray acknowledged in a statement yesterday how "intense commentary around my position risked becoming a distraction".
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