O'Leary quicky emerged as the favourite for the post after Peter Reid's dismissal on Monday, and has declared his availability.

However, a report in the Sunderland Echo newspaper suggests that O'Leary is not deemed a suitable replacement for Reid by the club.

"Using local knowledge, I can tell you David O'Leary will not get the Sunderland job," Graham Anderson, football writer for the Sunderland Echo, told BBC Radio Four.

"I think his dealings with the Leeds board once he was sacked has an influence and the fact that he wrote a book about Leeds' troubles last season will not have helped his cause either."

O'Leary was sacked in June this year and has since threatened to take the club to court following the breakdown of talks over his compensation package.

During his Leeds tenure, O'Leary wrote a book entitled 'Leeds United on Trial' in which he commented on the court case involving Lee Bowyer and Jonathan Woodgate.

O'Leary said on Monday: "I'm gutted for Peter, but I'm an out-of-work manager and I'm happy to talk to anyone.

"If Sunderland want someone to take on Newcastle United, I'm their man."

Newspaper reports suggest Republic of Ireland manager Mick McCarthy is the new favourite for the post, but George Graham appears to be out of the running.

Of the other contenders, Bolton manager Sam Allardyce, Alan Curbishley of Charlton and West Brom's Gary Megson have been touted as possibilities due to their success in building teams with a limited budget.

Reid has already spent �15m this season on Stephen Wright, Matthew Piper, Marcus Stewart and Tore Andre Flo and the transfer window does not re-open until January.

Black Cats chairman Bob Murray wants to name Reid's replacement before Sunderland's next Premiership game on 19 October.