According to The Athletic, talks between Ipswich and Strasbourg’s owners BlueCo have progressed positively, and an agreement could be finalised as early as next week.
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O’Neil only took charge at Strasbourg less than six months ago, replacing Liam Rosenior, but is now set for an early exit.
During his short spell in France, he guided the club to the UEFA Conference League and Coupe de France semi-finals, although their Ligue 1 form dipped significantly, resulting in no European qualification for next season.
Strasbourg president Marc Keller had previously indicated O’Neil would remain in charge, but developments have since shifted rapidly, paving the way for a Premier League return with Ipswich