He lead them to a win over Nottingham Forest at the weekend, and had been tipped to take over at the Priestfield on a full-time basis.
Keith Ryan, who has been in temporary charge of the Wanderers since Tony Adams quit a fortnight ago, will act as his assistant alongside former player Steve Brown.
Gorman said: "Our aim is to get into the play-offs, and we're in a good position - only one point adrift in the table."
New Kidderminster boss Stuart Watkiss has a much tougher brief on his hands - to try and keep Harriers in the League.
He will arrive at Aggborough on Wednesday after leaivng his post as academy manager at Barnsley.