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Published 21:15 25 Feb 2016 GMT
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And in an interview appearing in the Irish Daily Star, the Ireland boss has claimed that it will be difficult for him to consider Towell if he is only playing a bit-part role for his club.
"It’s never too late," O'Neill said. "Although I did say to young Towell a couple of months ago when he was making the move [from Dundalk], if he thinks that I’m going to travel on down to Brighton to watch him playing in the reserves he’s got another thing coming.
"Let him break into the team, let him get there and be part of it. It’s been tough so far but he can definitely push on."
There are less than four months to go until Ireland's Euro 2016 opener against Sweden and O'Neill did admit that players like Towell and Peterborough midfielder Chris Forrester are nearing the point where they can be called up to the Irish squad, but that they will be cutting it tight.
He said: "You mentioned young Forrester and you mention players like that. Is it too late? It’s getting close."
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