Wolves have struggled for form in the Premier League this season. They currently sit 19th in the league, on just nine points after 16 games.
O’Neil was expected to lose his job following 2-1 defeat to West Ham on Monday night in a match which was dubbed ‘El Sackico’. But he was given a stay of execution.
The Englishman survived just one more game, as a 2-1 loss to Ipswich – in heartbreaking fashion with the Tractor Boys scoring their winner in the 94th minute – saw O’Neil dismissed.
Lopetegui extended his stay with the London club with the 2-1 win, which heaped more pressure on O’Neil.
Reports have it that Ole Gunnar Solakjaer is likely to take his place at Molineux.
