Speculation is increasing that Martin O'Neill will be appointed Aston Villa's new manager at some stage this week.

Local press reports claim an appointment is imminent, although operations director Steve Stride says the situation is simply ongoing.

The Northern Irishman has been a leading candidate to join the Midlanders since David O'Leary's departure last month and the challenge of restoring the club to past glories plus the convenient location in regards to his Buckinghamshire home should persuade O'Neill to return to management.

Current chairman Doug Ellis may be prepared to sell his stake in the club but he wants the former Celtic boss to take the reins at Villa, to help ensure a bright future.

An American consortium led by Randy Lerner is in pole position to complete a takeover at Villa Park and developments are expected on a number of fronts in the coming days.

Villa have yet to make any incoming transfer moves in the summer window but Lerner's financial clout could change all that if his bid to gain control is successful.

O'Neill has been linked with a number of jobs since leaving Celtic to care for his sick wife as England, Middlesbrough, Newcastle United and Sunderland all considering trying to appoint the former European Cup winner.

"Contrary to rumours circulating today, there is no announcement planned concerning the appointment of a new manager," explained Stride.

"The situation remains ongoing and we will inform fans as and when it is possible to do so.

"But speculation concerning an announcement today is extremely premature."

Sky Sports