O'Neill joined Dundee United in August 1989 for a club record fee of £350,000. A difficult relationship with manager Jim McLean came to a head in 1991 when O'Neill refused to extend his contract and was dropped from the first team. He left the club in 1993 joining Hibernian where he had three successful seasons under the management of Alex Miller. O'Neill agreed to join Austrian club Sturm Graz on a Bosman free transfer in 1996 but changed his mind after an offer to return to English football with Coventry City where he spent just over two years.