O'Neill feels there's still more to come from him, particularly on the attacking side as Rose develops his understanding with wing ace James McClean.
"Danny is improving as he gets fitter," he told safc.com. "Having not played for a while for Tottenham Hotspur, he's now getting a run of games and his fitness is improving.
"I've been very pleased with him. He's good at getting forward and helping James out on the left.
"He is still just bedding into the team so doesn't always take the chances to burst forward, but defensively he's been sound and I'm delighted with that."