According to reports in the Guardian, the club is trying desperately to persuade O'Neill to take up the job, after the Northern Irishman was distinctly unimpressed with the revelations about his appointment before an official announcement.
Further reports indicate that the Hammers board have been in talks with O'Neill's agent since early last week, and he was actually inclined to take up the post in a resuce operation to pull the side out of the relegation zone this season.
However, it was announced in the media on the morning of the game against Arsenal that Grant would be sacked after, which could scupper the deal that the club have with O'Neill.
O'Neill is believed to be disappointed with the leak and how it will affect his standing amongst other managers. There is an unwritten code for managers that they will not chase a job while someone else is still in the position, and although clubs will always sound out replacements before a sacking, those discussions are usually private.
There is also much sympathy for Grant, who has maintained a dignified manner while aware that he is on the plank at the club.
When asked after the match about the security of his position, he said: "I prefer to talk about football rather than answer questions about other things around, especially when I am not the man you need to be asking," the Israeli said after the 3-0 defeat at home against Arsenal.
"I had two choices and chose to focus on football. I want to focus on the thing I can control and this is the team."
However, it is certain that the Israeli will not be cheap to sack, given that he signed a four year deal with West Ham just six months ago on June 2010.