Martin O'Neill met Sunderland chairman Ellis Short on Thursday evening, with talks understood to have been positive.
Sunderland chairman and owner Ellis Short outlines project
Martin O'Neill met Sunderland chairman Ellis Short on Thursday evening over the club's managerial vacancy, with talks understood to have been positive.
Sky Sports understands that although the discussions ended 'without conclusion', they were believed to be very fruitful.
Further talks are expected between the parties on Friday, but as yet nothing has been agreed.
Short is believed to have outlined the future project on offer at the Stadium of Light, including terms.
O'Neill is now considering the prospect of returning to management for the first time in almost 18 months following his departure from Aston Villa in August last year.
Target
After parting company with Steve Bruce on Wednesday evening, Short and his fellow members of Sunderland's hierarchy were inundated with interest from a number of managers.
But O'Neill quickly emerged as their number one target and
Sky Sports understands that the job is his to turn down.
The Black Cats do not want a long, dragged out affair over the appointment and will be hopeful a deal with O'Neill can be concluded before the weekend's game with Wolves.
Although, even if an agreement is reached, caretaker boss Eric Black is fully expected to remain in charge for the trip to Molineux.
Sunderland director Niall Quinn is expected at the club's training ground on Friday to bring the playing squad up to date with how the situation is developing.
