Reliable sources say that negotiations on the multi-million pound purchase of the club are welladvanced.

There is continued speculation that Quinn will hold the chairman's position in the new regime. O'Neill, who stepped down as manager of Scottish club Celtic last year, is now favourite to become Sunderland manager if the deal goes through.

The move follows the resignation last Wednesday of Sunderland's long-standing chairman, Bob Murray. The Jersey-based businessman, who is believed to have been holding talks with the Quinn consortium for some time, will stand down from the role he occupied for 20 years on 30 June.

The Quinn consortium has achieved the backing of the majority of Sunderland supporters, many of whom had voiced frustration at the delay in striking a deal.

Sections of the club's support had also threatened not to renew their season tickets until the Quinn takeover was confirmed.

Former Northern Ireland international O'Neill is known to be Quinn's first choice for the vacant manager's job at the Stadium of Light.

It is believed that Quinn will lure O'Neill to Sunderland with the promise of funding to build a team capable of returning the club to the premiership next season.