The Irish Independent says that O'Neill remains the preferred candidate to replace Giovanni Trapattoni but due to the FAI's chief executive (John Delaney) and president (Paddy McCaul) being away at a UEFA summit in Croatia, the process is being delayed.
The FAI's board of management are still awaiting for a date when a meeting will be held to discuss who should be the next manager.
O'Neill is expected to be contacted to ascertain his interest before this meeting finally takes place.
Ireland could be forced to appoint a caretaker manager for next month's World Cup qualifiers with Germany and Kazakhstan as they have little over a week under FIFA rules to notify clubs that they may require their players' services.
Ireland travel to Cologne on October 11, a day short of a year since they were trounced 6-1 by the same opposition at the Aviva Stadium, a result - or more accurately, a performance - which proved to be the beginning of the end for Trapattoni.
They will bring down the curtain on a disappointing campaign at home to Kazakhstan four days later, and do not have another scheduled fixture until Serbia head for Dublin for a friendly in March next year.
O'Neill has been out of football since losing his job at Sunderland at the end of March with the club fighting for Premier League survival.
He had been drafted in by the Black Cats in December 2011 in a move craved for so long by many supporters, and his initial impact was little short of spectacular.
However, having dragged Sunderland clear of the basement battle in which they were engaged on his arrival, he struggled to take them to the next level despite being allowed to invest around £22million in Scotland striker Steven Fletcher and England winger Adam Johnson during his only summer transfer window.
By the time he was shown the door after a dour 1-1 home draw with 10-man Norwich, O'Neill's legendary enthusiasm appeared to have deserted him.
However, the Ulsterman is understood to be keen to return to the game, and the challenge of international football is one which appeals.
It was perhaps significant that he was unable, despite several attempts, to persuade long-time ally John Robertson to join him on Wearside, and it would be no surprise if he wanted the Scot to do just that in Ireland.
However, Robertson is currently recovering after suffering a suspected heat attack last month and that could preclude his involvement.