Aston Villa have drawn Martin Jol's Hamburg in their UEFA Cup group.
Villa will also meet Dutch giants Ajax, Czech Republic side Slavia Prague and MSK Zilina of Slovakia in their search for European success.
O'Neill is looking forward to coming up against Jol.
The Dutchman has done an impressive job at Hamburg, guiding them to the top of the Bundesliga in his first role since leaving Spurs last season.
"He is going splendidly and well played him," O'Neil told Sky Sports News.
"I think he is an excellent manager, I think he has done that in the past and I think everybody would say on reflection that it was pretty rough [his sacking], in the sense they had finished twice fifth and they looked like they would be challenging.
"Anybody can get off to a poor start as Tottenham have done this season, but I have got no doubt that they this season will recover from that as they have too good a squad to do so.
"It is good to see Martin doing so well."