O'Neill said: "Any sort of options are open to him. He will be in the driving seat if he continues to perform in the manner he is doing.
"Gareth can buy himself out of his final year. I understand that but it has never been a major issue with the owner of the football club [Randy Lerner].
"There has been no pressure from the owner to cash in. He is happy to hear the news as well that Gareth is staying.
"I know it is an old cliche but Gareth is really now just concentrating on the footballing aspect of things."
England international Barry has been with the Midlands club for 10 years and has been valued at £18m by O'Neill.
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