Town duo reject deals
Both Gray and Margetson were offered one-year contracts by the board of directors and the players are not happy with both the terms and length of the deals.
Margetson told the Huddersfield official site: "Both Kevin and I have rejected the one-year contracts that we were offered. To be honest I wasn't happy with the wages or the length of contract.
"I played every game last year for Town and the Board knows my value. The wage cut they were asking me to take was too much and the length of the contract was not long enough. A contract for a year is not a long time in football."
Director Paul Haigh said: "We are still in discussions with Martyn and Kevin's agent who is currently on holiday. We are confident that we will be able to negotiate an agreement that will be acceptable to both parties.
"It is imperative for the good of Huddersfield Town and the players that negotiations progress from here and hopefully we will have an answer sooner rather than later."
Chairman David Taylor added: "One thing I am garnering information on is player's contracts, both the types and the lengths, in our Division.
"Also being scrutinized is the best level of wage for the Second Division. We need to know about these matters better than players' agents do to put us in a better position to negotiate."