SUNDERLAND officials are confident of appointing Martin O'Neill as the club's new manager this weekend after another productive day of discussions with the former Aston Villa boss.

Having held face-to-face talks with Ellis Short in London on Thursday evening, O'Neill spent yesterday finalising the finer detail of the agreement that should see him replace Steve Bruce in the next 48 hours.

It had been hoped that O'Neill's appointment would be formally confirmed yesterday, but there remain some minor technicalities relating to the content of his contract and the exact make-up of his backroom team to confirm.

However, senior Sunderland figures and sources close to O'Neill all insist that discussions are progressing smoothly and a final agreement is expected this weekend, enabling the club to stage an introductory press conference on Monday.

O'Neill is expected to be at Molineux tomorrow as the Black Cats look to ease their position close to the foot of the Premier League table with a win over fellow strugglers Wolves.

Even if his new position is confirmed later today though, the Northern Irishman will not be involved in either the selection or the tactics for tomorrow's game.

Eric Black, who was formerly Bruce's number two, will be in sole caretaker charge as Sunderland line up against a Wolves side led by former Wearside boss Mick McCarthy.

Black, who is not expected to make wholesale changes to the starting line-up despite last weekend's 2-1 defeat to Wigan, took charge of training yesterday and will oversee today's final preparations for the first game of the post-Bruce era.

Tomorrow's match is likely to be his final act as a Sunderland employee, however, as O'Neill is ready to install his own backroom staff as soon as he is appointed.

His long-term assistant, Steve Walford, is expected to join him on Wearside, and there is also likely to be a role for former Newcastle winger Steve Guppy.

While Black took training yesterday, former chairman Niall Quinn delivered an impassioned speech to the whole of the first-team squad in which he reiterated the board's desire to drive the club forward and thanked the players for their support during a difficult few days.

"It is important that everyone is focused on the game and prepares in the right manner so that's what we'll be concentrating on," said Black.

"Naturally it's a difficult time for everyone at the club but we have to be professional and get on with the job in hand.

"Our number one priority is to try and get a valuable away win and three points this weekend. Molineux is always a tough place to go, as we've found out over the last couple of years. But everyone is fully focused on what is sure to be a difficult game."

O'Neill will no doubt be keen to watch Sunderland's players at close quarters as Phil Bardsley and Craig Gardner are the only squad members he has previous experience of working with.

He has been out of management since he left Aston Villa in August 2010 following a breakdown in relations with the club's American owner, Randy Lerner.

He will be working with another American businessman in the shape of Short, and the pair's dynamic has been cited as a possible source of difficulty in the future.

However, while O'Neill is understood to have grown disillusioned with Lerner's reluctance to invest at Villa Park, he is believed to be realistic about the level of financial support that will be made available to him at Sunderland.

There is likely to be money to spend in the January window, with the Black Cats having banked more than £40m in the last 12 months thanks to the sale of Darren Bent and Jordan Henderson, but the budget will certainly not be limitless.

O'Neill, who was a boyhood Sunderland fan, is at least assured of a warm welcome from the Stadium of Light support though, as he was the favoured choice of most fans from the moment Bruce's departure was confirmed.

Prior to managing at Aston Villa, O'Neill was in charge at Celtic, and the Bhoys' current boss, Neil Lennon, feels his predecessor is ready to return to the dug-out.

"If he gets the job, it would be brilliant to see him back in the game," said Lennon. "He has a penchant for lifting clubs. Sunderland is a huge club and I know that as a boy growing up, it was his favourite team, so there might be an emotional tie there for him.

"But I think he is just ready to get back into the game and if he is offered the job, I hope we will see him back in the Premier League sooner rather than later."