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O'Neill, who departed Celtic Park two decades ago after a successful period filled with trophies, is set to assume control following the unexpected resignation of Brendan Rodgers on Monday.
This departure was met with a forceful statement from principal shareholder Dermot Desmond, who characterized Rodgers’ conduct during his tenure as "divisive, misleading, and self-serving."
"I was taken aback and questioned whether this was actually true," the 73-year-old shared with TalkSport, noting that his first match would be at home against Falkirk in the Scottish Premiership on Wednesday.
"It is challenging to decline an offer from someone who originally entrusted you with the position when they had excellent alternatives 25 years ago. Once I managed to gather myself, I started to think that maybe accepting was the right choice."
O'Neill last took the helm in 2019 during a fleeting period at Nottingham Forest after his role as manager of the Republic of Ireland concluded the previous year.
His time at Celtic is regarded as legendary by the fans, with few coaches in the club's history held in higher esteem.
He secured three league championships, three Scottish Cups, a Scottish League Cup, and guided Celtic to the Uefa Cup final.
"This is a temporary arrangement. Celtic are likely shocked by Brendan's departure. They are clearly in search of a permanent manager, so this is just a short-term solution," O'Neill mentioned, having enlisted Shaun Maloney to support him.
"Interim signifies interim. It is as straightforward as that. I would assume Celtic is looking for a young coach with a proven track record. We aim to advance the club now.
"Of course, I had an incredible time at Celtic; it was an honor. I cannot stress enough that this is temporary until a permanent manager is found. My role is simply to keep the position warm.
"I might reach out to Henrik Larsson [the star striker during his time at Celtic] to see if he has been keeping fit."
The champions of the Scottish Premiership are currently eight points behind the early leaders Heart of Midlothian following a 3-1 defeat at Tynecastle on Sunday.
Celtic has also experienced a modest performance in Europe and an uninspiring transfer window.
In an extraordinary letter to supporters, Desmond challenged Rodgers’ claim that he was never formally offered an extension for his contract, refuted the idea that signings were forced upon him, and criticized his "desire for self-preservation at the expense of others."
"In truth, he had the final say on all football-related matters and was consistently supported in the recruitment process, including record investments in players he specifically identified and approved.
"Unfortunately, his statements and subsequent actions have been divisive, misleading, and self-serving. They have created a toxic environment around the club and fueled animosity toward members of the executive team and the board.
"The setbacks we've experienced recently cannot be attributed to our structure or model but rather to one person’s fixation on self-preservation, which has been detrimental to others."
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