Rose is on a season-long loan at the Stadium of Light and the England Under-21 international has impressed in making 14 appearances for Sunderland.
The left-back, who can also play in midfield, has previously said he would be keen to join the Black Cats permanently and O'Neill has been delighted with the 22-year-old's contribution.
However, the Sunderland manager's biggest concern is the possibility of his Tottenham counterpart Andre Villas-Boas summoning Rose back to White Hart Lane next month.
"It's very premature to talk about a permanent move because we haven't discussed it with Tottenham," said O'Neill in the Daily Mirror.
"The reaction of our crowd suggests they'd like to have him permanently but there's a way to go before that happens.
"Tottenham have the ability to recall Danny in January. If that's the case, I'm just trying to enjoy him being here with us.
"He knows there are areas where he can improve, but he's pleased with his performances and is enjoying it here immensely.
"He's also taking on extra responsibility going forward. He's not just a defensive full-back."
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