Greene has been in charge at the New Bucks Head for more than three weeks following Gavin Cowan's departure.
He has overseen an upturn in form over the past two fixtures, beating Farsley Celtic and drawing with Gloucester City.
Telford have confirmed that after conducting a number of interviews, that their preferred candidate to take the reins has decided to stay with their current club.
"The club conducted a number of interviews with good experienced candidates for the position of first team manager, but the preferred candidate decided to stay with his current club." the club confirmed, in a statement online.
"Meanwhile the interim manager Dennis Greene has been delivering improved results on the field, with four points from the last two games and Dennis will continue as first team manager."
The Bucks currently sit in 19th in the National League North table, with eight points from 10 games.