Rice rejoined Arsenal in 1984 as youth team coach, a post he held for the next 12 years, winning the FA Youth Cup twice in 1987–88 and 1993–94. In September 1996, Rice was briefly caretaker manager of the club after the resignation of Stewart Houston, who himself was caretaker after the sacking of Bruce Rioch. He managed the side for three FA Premier League matches (all of which Arsenal won) and a 3–2 defeat in the UEFA Cup at home to Borussia Mönchengladbach.