The Northern Irishman was said to have made a £5million offer for the forward but O'Neill insisted the reports were without foundation.
'There's not a grain of truth in the story that we've put in an offer for the player and I don't know where it is coming from,' O'Neill told the club's official website.
Zigic: Any move to Villa is news to O'Neill
'I don't even know who the player's agent is.
'I wouldn't normally comment but there have been so many stories claiming this as fact and people have been quoted.
'They're completely wide of the mark. So I felt I had to put the record straight.'
-
London gets ready for the Diamond Jubilee - in pictures
-
EXCLUSIVE: I won't play with Joey Barton, says Adel Taarabt
-
Diamond Jubilee: Boat by boat, here is where to watch the Queen's Thames flotilla - VIDEO
-
Duchess of Cambridge is pretty in pink at her first Buckingham Palace garden party
-
News pictures of the day
-
London 2012 Olympics: Raising the bar and the Games haven't even started yet. Price of toasting Team GB is £6 a pint! -
Timebomb ticking in Thames Estuary could put Boris Island plans in jeopardy -
-
‘We will form a human barricade to keep missiles off our homes’
-
Regent’s Park rapist: Teenage jogger assaulted by stranger in terrifying 7am attack
Why I think doctors are right to strike 
Family pay tribute to the London man who gave his life to save a five-year-old girl from drowning 
Eton schoolboys fly Games flag on Everest 
Horror on the 5.53! Commuter dragged 200 feet after getting hand trapped on train 
Shrimpy's - review 
The O2
Check out the cool stuff happening under our tent such as the hottest gigs, comedy, sport, films, clubs, bars, restaurants and much more.
A home to be proud of with Halifax
Download the Halifax's brilliant, free new Home Finder app, and take all the pain out of finding your dream home.
Can you imagine a career in teaching?
Be inspired to teach - let real teachers show you how rewarding the job can be.
Playing a game-changing role during the Games
Cisco is providing the solutions for London 2012's complex IT needs.
Win a Silverstone track day with Zantac 75
Feel the burn of a different kind - 20 Silverstone motoring experiences to be won
Celebrate with MARTINI®
This weekend toast one royal with another and make your Jubilee sparkle with a MARTINI Royale.
Rock star
Happy anniversary
Victoria Coren
Summer party
Diamond Jubilee
Glamour Awards
Garden party
First review
Fair-weather goths
Dog save the Queen
