But he has been interviewed by Villa owner Randy Lerner and created a favourable impression with the American multi-millionaire.
If Lerner decides Houllier is the right man to succeed O'Neill, then Villa hope to make an appointment early next week - certainly before their next match at Stoke on September 13.
Houllier enjoyed considerable success with the Reds and led them to a Uefa Cup, FA Cup and League Cup treble in 2001.
Before he moved to Liverpool, he also enjoyed title success with Paris St Germain and spent a decade overseeing the development of French football.
Former West Ham boss Alan Curbishley and care-taker boss Kevin MacDonald have also been interviewed for the post by Lerner and Villa chief executive Paul Faulkner.