Celtic manager Martin O'Neill has admitted the club is paying for its failure to directly replace midfielder Arne Engels. The Belgian's summer departure to West Ham for £22 million has left a critical gap in midfield running power, a deficiency O'Neill believes has directly contributed to the team's recent poor form, which includes three losses in their last five matches across all competitions.

O'Neill made the comments ahead of the first league meeting of the season with Rangers at Parkhead. He said the search for a replacement must be a top priority when the January transfer window opens, acknowledging the club's current squad lacks a direct profile for that role.

"I think that in an ideal world, it would have been greater to have the likes of Arne Engels and that type of running power," said Martin O'Neill. "The data we track on goal minutes and high-intensity actions shows a clear drop-off in that area of the pitch since his departure, and it's been costly."

The manager confirmed the club knew Engels was likely to leave from as early as January, when Nottingham Forest made substantial bids. Celtic resisted a sale then but agreed to the West Ham move in the summer without a replacement secured. A late attempt to sign Torino's Lithuanian midfielder Gvidas Gineitis did not succeed.

"And that’s really what we were trying to do when we knew that Arne was going to leave," O'Neill added. "So, it didn’t materialise, but that’s something that we would certainly have to look at."

The absence has been felt in three significant defeats. Celtic crashed out of the Champions League to LASK, lost 3-0 to Rangers in the Premier Sports Cup, and fell 3-1 to Ferencvaros in the Europa League on Thursday. Despite those setbacks, the team sits first in the Premiership standings with 18 points from six games, holding a narrow lead.

O'Neill, who welcomed ten new signings over the summer, said the recruitment was not built around a single system. He stressed the universal need for strong, running players, a quality reflected in the team's overall stats. "If you’re going to play whatever system you want, you need strong running players in your side," he said. "That's a fundamental, not a tactical luxury."

The immediate focus is the lunchtime derby against Rangers, who are third in the table. Celtic's last meeting with their rivals ended in a 3-0 defeat. The manager will be without the injured Yang Hyun-Jun, Alistair Johnston, Callum Osmand and Jota for the fixture, a significant list detailed on the club's injuries page. Following this key match, Celtic's next fixtures include a midweek league encounter and a return to European action, presenting a quick chance to address their inconsistent form.

Read the full report at Daily Mail Sport