Sunderland striker James McFadden is poised to join Nottingham Forest on loan, despite agreeing a deal to stay at the Stadium of Light until the end of the season.
O’Neill is keen for the 29-year-old former Scotland forward, who joined Sunderland on a free transfer earlier in the season, to play more football.
The former Everton striker will be reunited with Alex McLeish, his manager at Birmingham and for Scotland, and is expected to agree an initial month-long loan at the City Ground.