Osbourne set to go out on loan

O'Neill believes Osbourne – and possibly defender Gary Cahill – will benefit from first-team football elsewhere to increase their sharpness.

Highly-rated Osbourne, 20, has made 17 senior appearances but none since October 28 at Bolton.

"People I'd be looking to send out on loan are young players who need first-team football because they have reached a point where they would benefit from games which they maybe aren't getting here," said O'Neill. "But we're not looking to decimate the squad, we're looking to strengthen.

"Isaiah would be one of those I'd seriously think about sending on a short term loan at the moment.

"He's injured – he has a bruised thigh and that's why he didn't play in the reserves on Monday night.

"But we're assessing his situation because a number of teams have shown an interest, certainly one in particular, and as soon as he's fit, we'll address it.

"I'm assessing the situation on a daily basis."

Cahill impressed in a three-month loan spell at Sheffield United, sparking more interest in the 22-year-old.

O'Neill said : "There are things ongoing at the moment. There's been a heck of a lot of interest in Gary which is not surprising considering he did so well at Sheffield United and it's a case of reviewing the situation.

"There will be things happening here this month which I think will benefit the club and the players and if I get the mix to satisfy both parties, then that's what we'll do."

O'Neill is determined to strengthen the Premier League's smallest squad this month to prevent the season "levelling out".

He would welcome any encouragement from Tottenham on Jermain Defoe, but the player first has to decide whether he wants to stay or go.

"This is a really important period for us. We've done really great so far – now you don't want the season just to level out," he said.

"We have the smallest squad in the Premier League and want to and need to improve that squad. But this won't be easy in January."