Staying until the end of the season 
Tottenham have allowed their recall clause on the England Under-21 international to lapse and that means Rose will now be at the Stadium of Light for the rest of the campaign.
There had been talk earlier this month that Spurs boss Andre Villas-Boas would opt to bring the youngster back to White Hart Lane but O'Neill has revealed that the Londoners needed to activate that right by January 17 to allow the Black Cats to get someone in as Rose's replacement.
The date has now passed and O'Neill is delighted one of Sunderland's best players of the season so far will remain until the summer at least.
"The loan deal contained an option for Spurs to recall Danny this month, but they had to exercise that option by January 17," O'Neill said.
"I'm pleased to say that they haven't done so, so he will be with us for the rest of the season and that is really good news.
"I know that Andre Villas-Boas said last month that he intended to let him stay here for the season and I never felt he would change his mind - unless, of course, they had injury problems. But at least we now know for sure."
Rose is currently out with a hamstring injury but is expected to be fit by the end of the month and O'Neill, who could make an offer to sign Rose permanently in the summer, added: "Danny has done very well for us in the first half of the season and hopefully he will continue where he left off when he recovers from his hamstring injury."
Tottenham have allowed their recall clause on the England Under-21 international to lapse and that means Rose will now be at the Stadium of Light for the rest of the campaign.
There had been talk earlier this month that Spurs boss Andre Villas-Boas would opt to bring the youngster back to White Hart Lane but O'Neill has revealed that the Londoners needed to activate that right by January 17 to allow the Black Cats to get someone in as Rose's replacement.
The date has now passed and O'Neill is delighted one of Sunderland's best players of the season so far will remain until the summer at least.
"The loan deal contained an option for Spurs to recall Danny this month, but they had to exercise that option by January 17," O'Neill said.
"I'm pleased to say that they haven't done so, so he will be with us for the rest of the season and that is really good news.
"I know that Andre Villas-Boas said last month that he intended to let him stay here for the season and I never felt he would change his mind - unless, of course, they had injury problems. But at least we now know for sure."
Rose is currently out with a hamstring injury but is expected to be fit by the end of the month and O'Neill, who could make an offer to sign Rose permanently in the summer, added: "Danny has done very well for us in the first half of the season and hopefully he will continue where he left off when he recovers from his hamstring injury."
