Citing two sources close to the situation, the Miami Herald reported on Tuesday that the team has told the center that he should be prepared for a possible deal.
The Herald goes on to report that a trade of O'Neal to the Phoenix Suns for Shawn Marion and Marcus Banks has been discussed. One of O'Neal's representatives told the newspaper that they were informed that talks with Phoenix were ongoing and serious.
ESPN.com's Marc Stein reports that this scenario has been rumored for a week, but it will not work without major modifications due to financial restraints.
The Heat have a league-worst 9-37 record and have lost four straight. O'Neal has missed the last six games with a sore left hip. Heat coach Pat Riley said on Tuesday that O'Neal will undergo an MRI.