Former manager O'Neill is in talks with Wolves for a possible return

– along with Middlesbrough boss Rob Edwards – were among the contenders to replace Pereira at the Midlands club.

And it is believed that the 42-year-old O'Neill is now in talks with Wolves for a possible return, with initial discussions having been positive.

Edwards' appointment would provide an opportunity to overcome several obstacles given his current position, and it is believed that Middlesbrough would receive a large compensation sum if their manager leaves.

This increases the likelihood of O'Neill's return, but sources have indicated that although he is a strong candidate, he is not the only contender.

Wolves have a history of hiring managers close to high-profile agent Jorge Mendes, including Nuno Espirito Santo, Bruno Lage, and Pereira.

And it is understood that in addition to O'Neill, Wolves are talking to at least one of Mendes' managers.

O'Neill was sacked by Wolves in December 2024 after a disappointing start to the 2024-25 campaign.

But the former West Ham midfielder is open to returning to management and rejoining Wolves, who are winless in the first 10 matches of the Premier League season.