Jim Jefferies has returned to Hearts as an advisor, with the club putting its search for a sporting director on hold because of the "time pressures and escalating costs" of legal action.
The former manager, 69, will advise the board and head coach Robbie Neilson for six months on a part-time basis.
Hearts' legal battle against relegation from the Scottish Premiership has been referred to arbitration.
The club will resume their search "in a few months' time".
The Tynecastle club had been keen to replace Craig Levein, who was sacked as sporting director and head coach in October.
"Given the time pressures and escalating costs of the ongoing challenge to our relegation - coupled with the reopening of various parts of Tynecastle and Oriam - we have decided to put our recruitment process on hold for now," the club said.
"Such an important appointment deserves our full focus and uninterrupted attention, which, right now, is simply not possible."
Jefferies, who the club say will "work closely with [owner] Ann [Budge] during the transfer window", most recently worked as sporting director at League Two club Edinburgh City.
He played for, and then managed, Hearts over two spells, winning the Scottish Cup in 1998.
Jefferies - who will take up his role on Monday - suffered a heart attack in September last year, before making a full recovery.
"I wasn't looking for anything full on as sporting director or anything like that," he said.
"It's a difficult time. We've just got to plan for what we know. Robbie's got to have the final say on players. Robbie will want to bring in his own people and we've got to support him to do that and find how best we can do that.
"My role is to help Ann and the Board and advise them on things that have maybe just been lacking attention and some things that have not been working. It's a simple as that."
Neilson said he was "delighted" by the news and that Jefferies' "experience and expertise will be of great benefit to both the club and myself".