But, despite that and their impressive start to the new campaign - in Scotland and Europe - he insisted that his side would still not be favourites to win the first Old Firm match of the season even if the match was at Parkhead.

‘‘I don’t see it like that (his side are favourites) and it wouldn’t really matter whether this game was at Ibrox or Celtic Park,’’ said O’Neill.

‘‘I believe current form can go astray. It will be very close, I hope it will, but I thought it was going to be close this time last year.

‘‘We come up with a great victory over Hearts the previous week and we were really confident, but we got well beaten.

‘‘But we picked ourselves up from that and went on to win the championship and if you tell me now that exactly the same thing will happen again I’ll take it. I will put up with getting beaten and going on to win the championship.’’

Rangers took sweet revenge on their bitter rivals for the 6-2 mauling at Parkhead with a 5-1 win at Ibrox last November.

But the Hoops made Dick Advocaat’s men suffer with victories in the CIS Insurance Cup semi-final and in the Parkhead return before hammering the final nail in the coffin at Ibrox with a 3-0 win in April.

O’Neill denies that the collection of Old Firm wins and the balance of power will not effect Sunday’s outcome.

But he admitted that ending the Ibrox jinx - there first win there since August 1994 has done more for confidence and belief than anything else.

‘‘I don’t think that (last season’s record) will play any part in the proceedings,’’ explained O’Neill.

‘‘I think going there last season and winning at Ibrox did more for us because we had not won there for a long time, but we put that to bed.

‘‘I suppose that gives us a boost psychologically and if you think about it now it’s not so long ago since we won at Ibrox.

‘‘So that showed that we’re capable of winning the game, but the rest of the matches mean nothing and belong to last season.

‘‘They were great for us last year, but they won’t play any part at all and I would have thought the build-up or even during the game.’’

O’Neill is looking forward to returning to the dressing room and the bench on Sunday not that he will spend too much time sitting down.

The former Leicester manager’s actions earned him a one-match ban from touchline during Tuesday’s Champions League match against Porto.

But while he described his time in the stand as ‘‘terrifying’’ his players went on to kick-off their Group E campaign with a win after the controversial defeat at the hands of Juventus a week before.

He was full of praise for his players and the fans today, but admitted he was looking forward to returning to his familiar role on the touchline.

‘‘It happened and there wasn’t much I could do about it eventually,’’ said O’Neill. ‘‘But I’m naturally very pleased with the result.

‘‘I assume that (on the touchline) will be my natural role. I don’t think too many people will be wondering where I am it’s what happens on the field of play that counts.

‘‘I thought the efforts of the players on Tuesday night was just phenomenal, especially after the events of the previous week.

‘‘But to dig in there for the last 15 to 20 minutes when they threw everything at us to try and get something out of the game was great.

‘‘I thought the Celtic support was excellent as well and I got those things out of the way I’m pleased we’ve won the match and there’s plenty to look forward to now, but it’s good to be back in the dug-out.’’

O’Neill, meanwhile, has no qualms about handing defender Bobo Balde his first Old Firm experience.

The Irishman has been delighted with the way the French defender has settled in and he believes there is still a lot to come from him.

O’Neill added: ‘‘He’s done very well, but I still think he’s still coming to grips with the way we like to play and to our particular system after being at Toulouse a long time.

‘‘But everything we’ve asked of him at the moment has been excellent and he’ll certainly get better.

‘‘He’s committed and got a great competitive streak in him and he’s making a big effort to learn the language as well and to understand the players.

‘‘He’s been terrific since he’s arrived and has got on with the job, but he’s got plenty of help from the Frenchmen around the place.

‘‘Didier (Agathe) helps him enormously, Momo (Sylla) chips in when he can and of course Lubo (Moravcik) can speak the language.’’

Chris Sutton also has a big weekend ahead of him as England coach Sven-Goran Eriksson looks to name his squad for the final World Cup match with Greece.

The Swede flew to Glasgow to watch the striker against the Portuguese side before returning to London.

But O’Neill has told Sutton not to be too downhearted if he is snubbed this time because he can take pleasure from the fact that he has made Eriksson take notice.

O’Neill said: ‘‘He’s doing great at the moment, but he knows himself that he’s got a long way to go.

‘‘ I don’t know what Mr Eriksson’s views are I spoke to him a moment or two before the game, but I have no idea what he thought afterwards.

‘‘But that won’t matter I’m sure he’s got his own plans in his head for the game against Greece.

‘‘But at least he took the opportunity to come up and if nothing else Chris Sutton his form has forced him to come up and do that so that’s good news for him.’’