The Blues are hoping to bring in the 43-year-old as Kieran McKenna’s replacement, with confirmation expected in the coming days.
The East Anglian Daily Times and Ipswich Star understand that personal terms are close to being agreed, with an official approach to BlueCo – owners of Strasbourg – set to follow. Ipswich do not anticipate any issues in agreeing compensation and finalising the appointment.
Ex-Manchester United manager Ole Gunnar Solskjaer was the other leading candidate in contention to take over at Portman Road, while Valencia’s Carlos Corberan was also considered according to The Telegraph.
O’Neil has had two previous stints in the Premier League, first with Bournemouth in 2022/23. He helped the Cherries avoid relegation before being replaced by Andoni Iraola.
A spell at Wolves followed, but came to an end when he was sacked in December 2024. It’s claimed that they held talks about bringing him back to Molineux in November 2025, but he withdrew from the process.
In six months in France, he helped Strasbourg reach the semi-finals of the UEFA Conference League and finish eighth in Ligue 1.
O’Neil is expected to bring Tim Jenkins and Neil Critchley as part of his backroom staff from his time at the Stade de la Meinau.
