O'Neill has been out of the Premiership for six years

BBC Radio Five Live's Pat Murphy insisted a deal was not a formality but did say that "all things being equal he will be named as manager later today".

Newspapers are claiming that a news conference will be held on Friday evening to announce O'Neill as the replacement for David O'Leary.

O'Neill has been out of football since leaving Celtic in 2005 to look after his ill wife, Geraldine.

Report: BBC Radio Five Live's Pat Murphy

Her health has improved and O'Neill now seems ready to take charge of Villa in time for the club's pre-season tour of Germany and Holland which begins on Saturday.

The Northern Irishman, who spent the summer as a pundit for BBC Sport at the World Cup, will join a club in a state of uncertainty.

There are four consortia - led by American billionaire Randy Lerner, lifelong fan Michael Neville, deputy judge Nicholas Padfield QC and Sven-Goran Eriksson's agent Athole Still - all vying to buy out current chairman Doug Ellis.

All have reportedly approved the appointment of O'Neill and his backroom team of John Robertson and Steve Walford.

"It's a coup by Doug Ellis if he signs the most charismatic British manager who's available," said Five Live's Murphy.

"By my reckoning there are five different consortia interested in taking over Villa and I understand that all of them have O'Neill as their first choice.

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"So, it would make sense for O'Neill to get in there as soon as possible, look at the players on their three-game tour of Germany and Holland and then make assessments on them before the Premiership season begins in a fortnight.

"And if all the personal and professional issues can be resolved today and O'Neill is delivered to a delighted Villa fan base then it will be interesting to see how much money Doug Ellis will hand to him before the transfer deadline on 31 August."

O'Neill began his career at Shepshed Charterhouse before moving on to Grantham then Wycombe and finally Leicester, who he guided to four successive top-10 Premiership finishes and three League Cup finals, of which he won two.