Locke (right) had already been helping with Killie's coaching
Kilmarnock manager Jim Jefferies says a reduction in revenue from television has forced his club to withdraw their offer of a coaching post to Gary Locke.
Locke, 34, retired from playing at the end of the season and Jefferies had lined up his former captain for a prominent coaching role this season.
"We wanted to take Gary on as a coach, but the drop in finance from the TV deal has scuppered it," said Jefferies.
"There are one or two things that have been out on hold because of this."
Broadcaster Setanta went out of business at the end of last season and the Scottish Premier League accepted an offer from ESPN-Sky worth half as much as a replacement.
Gary's tailor made for an assistant's job or a coach
Kilmarnock manager Jim Jefferies
Finances were already tight at Kilmarnock before the drop in projected income, but Jefferies hopes that he might be able to bring Locke back to the club at some point.
"If things change, we wouldn't be adverse to looking to take him back," he told BBC Scotland.
Locke, who quit playing at the end of last year because of a recurring knee injury, had been heavily involved in Killie's preparations for the new season.
"Gary was a popular lad at the club and he was a good link between the players and the management," said Jefferies.
"He was with us in Italy for pre-season and we had hoped to take him on to the coaching staff, but unfortunately that has not been able to happen.
"He's tailor made for an assistant's job or a coach."
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