Aston Villa have written to Liverpool outlining their demands for the transfer of Gareth Barry to the Merseyside club.
The letter is understood to have asked for £17m pounds plus Steve Finnan, with full payment within the next twelve months.
"Liverpool have come back to us and we have responded to their proposal with a letter. We're still waiting to hear back." Said O'Neill.
He added: "It's really up to Liverpool. I really don't know how it's going to work out at the moment. I'm sure there will be some sort of resolution at some stage or another."
The saga has been dragging on for a number of weeks now, with Liverpool having numerous bids rejected.
Things took an ugly twist when Barry was disciplined and ordered not to return to pre season training after he criticised Martin O'Neill in an interview with a Sunday newspaper, commenting that "It's seven weeks now since the season finished but while the gaffer's found time to be a pundit at Euro 2008, he hasn't found the time to speak to me."
"Have Villa offered me anything to try to persuade me my future is at Villa Park, not Anfield? Not a thing."
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