Former Celtic manager O'Neill would be ready to let Moore leave Villa Park if Rangers meet the asking price but is waiting to hear whether the Scottish league leaders intend to follow up their interest.
O'Neill told the Birmingham Mail: "Rangers haven't come in for Luke in terms of a bid, but Walter Smith asked me about him and that's as far as it's gone.
"Is there a £3.5million price tag? Well, yes, obviously because Luke is a Premier League player and that's what he would cost in this day and age.
"I spoke to Walter maybe about a week ago and he hasn't been in touch with me since."