The West Midlands outfit announced on Sunday afternoon that they had made the decision to remove the Englishman from his role in the dugout, despite chairman Jeff Shi publicly backing him earlier in the week.
Saturday's 2-1 defeat at the hands of relegation rivals Ipswich Town proved to be the final straw, Wolves suffering their 11th loss in 16 top-flight fixtures during 2024-25.
Sitting four points adrift of safety in the Premier League table, owners Fosun International ideally need to appoint a replacement ahead of the trip to Leicester City on December 22.
According to David Ornstein of The Athletic, Wolves have already done the groundwork in an effort to bring in Vitor Pereira as their next boss.
Wolves to turn Portuguese yet again?
The report claims that Wolves are working on a deal for the 56-year-old, who is currently in charge of Saudi Pro League side Al Shabab.
Fosun, known to want to adopt a self-sustainable business model, are allegedly prepared to pay the release clause in Pereira's contract.
Providing that particular option is activated, Pereira is said to be ready to make the switch to Molineux in an effort to move Wolves out of the dropzone
Pereira is no stranger to being linked with a switch to the Premier League having been in line to move to Everton before the Toffees ultimately appointed Frank Lampard instead.
His last three roles have been outside of Europe, having spells at Brazilian giants Corinthians and Flamengo as well as his current position as Al Shabab.
After 13 games, the White Lions sit in sixth position in the Saudi Pro League table with 23 points, just five points adrift of third place.
Between 2011 and 2015, Pereira won two Portuguese league titles with Porto and a Greek top-flight crown with Olympiacos.
Would Pereira be a suitable appointment?
Wolves are no strangers to working with Portuguese managers with Nuno Espirito Santo and Bruno Lage having been previous incumbents in the dugout.
Pereira has generally held strong defensive records at his previous clubs, something that must improve at Wolves with 40 goals having been conceded in just 16 matches.
Furthermore, Fosun may feel that Pereira is more likely to tempt higher-profile names to the club in January than O'Neil, who leaves Wolves having accumulated just 55 points from his 54 Premier League matches in charge.
Written by
Darren Plant