The stumbling block could be the £50,000-plus fee being demanded by Blues for the Walsall-born midfielder.
Lee see's O'Connor as the man to boost Walsall's survival hopes, and the Blues skipper confirmed: "At this moment nothing has been sorted out, but I would like it to happen sooner rather than later.
"I have had five-and-a-half good years with Blues, but the writing is on the wall and I am surplus to requirements, but I would have preferred a free transfer," he continued.
"It would be great to go back to Walsall and help them, but it's out of my hands."