Exclusive: Celtic’s preferred candidate to replace O’Neill revealed.

Celtic are reportedly considering Kieran McKenna as their leading candidate to become the club’s next permanent manager, although an £8million compensation requirement could complicate any attempt to bring him to Parkhead.

Sources have told Football Insider that the Hoops have identified the former Ipswich Town boss as their preferred option while uncertainty continues to surround Martin O’Neill’s position. The current manager is facing growing scrutiny following an inconsistent run of results, with a number of recent Scottish Premiership performances increasing questions about whether he should remain in charge.

McKenna is understood to be high on Celtic’s shortlist and could move into a new job. He left Ipswich during the summer after guiding the club to promotion, but his departure did not mean he became completely free of contractual obligations. An agreement reportedly included financial protection for Ipswich, meaning Celtic would have to pay compensation estimated at around £8million if they wanted to appoint him.

The club have not ruled out continuing with O’Neill, either. Celtic’s 3-2 victory over Besiktas in the Europa League has eased some of the immediate pressure on the experienced manager and restored a degree of confidence after a difficult spell. That result may give the hierarchy more time to assess the situation rather than make an immediate change.

McKenna emerges as a leading candidate

The possibility of McKenna taking charge at Celtic has been discussed behind the scenes. Football Insider previously reported on 25 October that the 39-year-old had influential supporters within the club as decision-makers considered potential candidates for the permanent managerial position.

Celtic are expected to examine several options, regardless of whether O’Neill is dismissed before the end of the current campaign. There is a growing expectation that the club will appoint a different manager at the conclusion of the season, meaning recruitment planning could continue even if O’Neill stays in the dugout.

McKenna is reportedly at the top of the list, but the compensation issue could make negotiations difficult. His work at Ipswich has made him an attractive option, and his departure from the Championship club might suggest he is available to take another role. However, the financial arrangement with Ipswich means Celtic cannot simply appoint him without considering the cost.

The issue was discussed on the latest edition of Football Insider’s Transfer Insider podcast. The reporter explained that McKenna is the name being mentioned most prominently in connection with Celtic, but stressed that the compensation figure is substantial.

He said the payment is believed to be around £8million and would have to be made to Ipswich if Celtic decided to bring the manager to Glasgow. The agreement was designed to protect Ipswich financially when McKenna stepped down, leaving the club entitled to compensation should another side move for him.

The reporter suggested that the amount could throw a spanner in the works for Celtic and make the decision over their managerial target more complicated. Even if the club view McKenna as the ideal candidate, they must decide whether the cost represents an acceptable investment.

O’Neill’s position remains uncertain

The speculation surrounding McKenna has intensified as O’Neill faces mounting pressure. Celtic’s record has not been good enough to remove concerns about the direction of the team. They have won only four of their last 11 matches in all competitions and have suffered six defeats during that period.

Those results have raised doubts about the long-term future of the 74-year-old, who returned to the club during a turbulent period. Football Insider reported on 6 November that O’Neill was moving closer to being sacked, suggesting the hierarchy could soon have to make a decisive call.

The victory against Besiktas has provided some relief. Celtic came from behind to win 3-2, recording their first victory of this season’s Europa League campaign and giving supporters a reason to feel more optimistic. Nevertheless, one encouraging result has not erased the wider concerns created by the team’s inconsistent performances.

The Premiership title race could prove decisive in determining O’Neill’s future. Celtic currently lead Rangers by four points, but the club are reportedly likely to review the manager’s position if they surrender top spot. Losing control of the league could increase pressure on the board to act before the season reaches its conclusion.

For now, Celtic face a difficult balancing act. They must decide whether O’Neill deserves more time after the Besiktas comeback, or whether the run of defeats means a change is necessary. If they choose to move on, McKenna appears to be a serious contender, but the reported £8million compensation fee could force them to consider alternatives.

The club are also expected to assess multiple managerial targets rather than focus exclusively on one candidate. That approach would give them options if the Ipswich payment proves too expensive or if an agreement cannot be reached.

McKenna’s position at the top of Celtic’s reported shortlist indicates the level of interest in his services, but no appointment has been confirmed. Any move would depend on the club’s decision about O’Neill, their willingness to meet Ipswich’s financial demands and the availability of other candidates.

Celtic’s next decisions could therefore shape both the remainder of the campaign and their plans for the next season. O’Neill has earned temporary breathing space through the win over Besiktas, yet his longer-term future remains uncertain. Meanwhile, McKenna’s reported status as the leading target gives the club a possible direction, provided they can resolve the compensation question.

The board must balance the urgency of improving results with the cost and planning involved in appointing a new manager. The coming weeks could determine whether O’Neill is given an opportunity or whether Celtic begin pursuing McKenna, despite the fee involved.