Donadoni, who led Italy to the quarter-finals of Euro 2008, has been out of work since leaving Napoli last October.
Aston Villa are currently conducting interviews as they seek a replacement for O'Neill and the 46-year-old has thrown his hat into the ring for the position.
Donadoni's UK representative, Charles Collymore, has confirmed the Italian's interest in the job.
"Roberto is a great student of the English game and he is very interested in the job at Aston Villa," Collymore told Sky Sports' website
"He knows Villa are a top club with an ambitious owner and he feels he could be a success there.
"Roberto has worked at the highest level and he has always dreamed of coaching in England.
"Roberto has the experience and talent to help develop the best young English talent and also the knowledge to help find the best foreign talent available."