The Sun says O'Neill is also close to landing Middlesbrough right-back Young in a £5m deal. Villa hope to wrap up the England international's signing in time to play in next week's UEFA Cup qualifier against Icelandic side Hafnarfjardur.
O'Neill has been chasing a right-back for over a year and believes Young, 29, fits the bill.
The ex-Charlton and Spurs defender missed training with Boro yesterday sparking speculation that he was on his way.
Young cost £2.5m from Addicks a year ago and was in the England squad for last year's Euro 2008 qualifier against Russia