
A representative for O'Neal confirmed the superstar centre was told to prepare for the likelihood of a trade to the Phoenix Suns, ESPN reported late Tuesday night.
The 14-time All-Star is expected to fly to Phoenix on Wednesday for a physical and to examine his sore left hip.
In the proposed swap, O'Neal would be shipped to the Suns in exchange for small forward Shawn Marion and backup guard Marcus Banks.
Heat team president Pat Riley refused to comment on the rumour. Meanwhile, Suns head coach Mike D'Antoni said on his radio show that no deal was close, and acquiring O'Neal is "a big question that's got to be thought and over pondered."
After leading the LA Lakers to three consecutive NBA titles, the seven-foot, 350-pound O'Neal, nicknamed, "The Diesel," was dealt to Miami in 2004. Along with Dwyane Wade, the league's most dominant big man, took the Heat to its only championship in 2006.
However in just two short seasons, the Heat has declined dramatically as Wade and O'Neal battle injuries. Miami currently owns the league's worst-record at 9-38, and has lost 19 of its last 20 games.
O'Neal, who turns 36 years old in March, is in the third year of a five-year, 100 million dollar contract, and is owned 20 million dollars in each of the next two seasons.
Slowed by the sore hip and foul trouble, O'Neal is averaging career lows of 14.2 points and 7.8 rebounds this season.
Marion, a four-time All-Star, is averaging 15.8 points and 9.9 rebounds this season.
Banks was the 13th pick of the 2003 draft, but has averaged just 5.2 points and 1.0 assists in two seasons behind point guard Steve Nash, a two-time league MVP.