Gary O'Neil has held talks with Wolves over a potential return to the club - less than 12 months after he was sacked by the relegation-threatened Premier League club. The Molineux side have begun the process of appointing a new head coach following the dismissal of Vitor Pereira on Sunday morning.

BBC Sport reported on Sunday that O'Neil - together with Middlesbrough boss Rob Edwards - was among the contenders to replace Pereira at the Midlands club. And it is understood O'Neil, 42, is now engaged in discussions with Wolves about a possible return, and that initial discussions have been positive.

Edwards' appointment, given his current employment, would provide many obstacles to overcome, with Middlesbrough believed to be entitled to a significant compensation fee should their manager leave. That leaves O'Neil well placed to return, but sources have indicated that while he is a strong candidate he is not the only contender.

Wolves have a history of appointing managers with close links to high-profile agent Jorge Mendes, in Nuno Espirito Santo, Bruno Lage and Pereira. And it is understood that in addition to O'Neil, Wolves are speaking to at least one manager from Mendes' stable.

O'Neil was sacked by Wolves in December 2024 following a disappointing start to the 2024-25 campaign. But the former West Ham midfielder is ready for a return to management and is open to re-joining Wolves, who are winless after the first 10 games of the Premier League season.