“I expect he is probably undergoing his medical right now. Naturally, I am disappointed that he is leaving the club because he has performed extremely well for us.
“It was difficult to persuade him not to take this chance. Had the opportunity not arisen, I believe he would have been content to stay. Nottingham Forest made a very late offer in January, but he never complained about what happened.
“This is a significant opportunity for him, and one that is very difficult to reject.”
O’Neill could understand Engels’ desire to complete the move, particularly after Canada right-back Alistair Johnston, who had drawn interest from Everton, sustained a leg muscle injury.
“In an ideal situation, I would have preferred him to remain with us for the next two matches before completing the transfer,” said the 74-year-old, who has fully resumed his duties following a medical procedure last week.
“However, that was unlikely to happen. There is always a concern when a player takes to the field while an offer is being considered. Alistair did that for us, picked up an injury, and situations like that can cause an opportunity to disappear.
“Arne was likely concerned that something similar could happen to him. From the player’s perspective, I can understand his decision.”
Johnston was substituted at half-time during Celtic’s 5-1 victory away to Kilmarnock on Sunday.
“He is expected to be unavailable for several weeks,” O’Neill said. “The transfer window will have closed by the time he recovers, and he has handled the situation with remarkable composure.
“It is unfortunate for him, but the problem is not expected to keep him out for an extended period. He will recover and return to action.”
Celtic completed the signings of Egyptian winger Haissem Hassan and Germany Under-21 midfielder Mika Baur this week, with O’Neill anticipating more additions to the squad.
Chelsea left-back Landon Emenalo could be among the new arrivals. The 18-year-old, who may join on loan as cover for Kieran Tierney, was shown around Celtic’s Lennoxtown training facility this week.
“I consider him a very promising young player,” O’Neill added. “We clearly need additional cover in that position. Kieran was outstanding last season after enduring a difficult period with injuries at Arsenal, and it was excellent to see him return so strongly.
“This young player undoubtedly has ability. He is currently dealing with a minor injury, but we hope it will improve soon. If it clears up as expected, I would be delighted to bring him into the squad.”
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