O'Neil pulls out of running for shock Wolves return

Gary O'Neil was sacked by Wolves last December

Gary O'Neil has pulled out of the running to become Wolves manager after coming close to a shock return to the club.

The 42-year-old had been a contender for a surprise comeback to replace Vitor Pereira, 11 months after being sacked.

Sources told BBC Sport a large part of the deal had been agreed but O'Neil has now withdrawn from the process.

Former Manchester United boss Erik ten Hag - sacked by Bayer Leverkusen in September after just three games in charge - is of interest to Wolves as they continue dialogue with several other candidates.

Under the terms of his 12-month severance package from when he was sacked last December, O'Neil is still being paid by the club.

BBC Sport reported on Sunday O'Neil - together with Middlesbrough boss Rob Edwards - was among the contenders to replace Pereira at Molineux.

Pereira - who replaced O'Neil last December - was sacked on Sunday after Saturday's 3-0 defeat at Fulham left them eight points from the safety line and bottom of the Premier League.

Wolves have just two points from 10 games - a total no side in the Premier League has survived with.

Edwards' position at Middlesbrough, given his current employment, would provide some obstacles, with Boro believed to be entitled to a significant compensation fee.

Edwards is a former Wolves Under-23 coach and was also first-team coach, having had a two-game interim spell in charge in 2016, and distanced himself from the role.

"I was told by my daughter yesterday [Sunday], so that probably tells you where I stand on it," he said.

"You know my links to the club but my full focus is on this job here, which is a brilliant job, and trying to turn things around from the weekend in a really big game against Leicester.

"Speculation stuff is hard for me to comment about, anything else other than Middlesbrough, which is where my focus is, that we've done a decent job so far."

Wolves have a history of appointing managers with close links to high-profile agent Jorge Mendes, in Nuno Espirito Santo, Bruno Lage and Pereira.

It is understood that in addition to O'Neil, Wolves were speaking to at least one manager from Mendes' stable.

O'Neil was sacked by Wolves in December 2024 following a disappointing start to the 2024-25 campaign, failing to win in their opening 10 games.

Analysis: Internal surprise O'Neil may have returned

By Nick Mashiter

There was surprise at Molineux the 42-year-old could have returned and sources close to O'Neil told BBC Sport he would not have entertained a comeback at the start of the year.

But, after 11 months out of work - having missed out on the Norwich job to Liam Manning in the summer - O'Neil's mind had clearly changed before his decision to pull out of the process.

He has switched agents this year in an attempt to find the right role.

Sources also cautioned how it would function with executive chairman Jeff Shi - former sporting director Matt Hobbs almost acted as a go-between previously.

In the summer Shi said Wolves did not sack O'Neil early enough last season.

Hobbs left in the summer with Domenico Teti, who worked with Vitor Pereira in Saudi Arabia at Al-Shabab, coming in as director of football in June.

The players O'Neil rated - and Wolves' best last season - Matheus Cunha, Rayan Ait-Nouri and Nelson Semedo have departed too.

Wolves still struggled with them under O'Neil and failed to win any of their opening 10 games last season - a stat they have repeated this campaign.

So there would have been a question if O'Neil had joined - how could Wolves succeed under him without the players he valued the most?