Michael O'Neill and the Scottish Football Association (SFA) met on Thursday in a meeting described as "productive", although no timescale has been set for the next step, according to Sky sources.
The SFA want Northern Ireland manager O'Neill to replace Gordon Strachan following Scotland's failure to qualify for the 2018 World Cup.
The meeting was the first time the two parties have met and O'Neill is understood to have impressed the SFA delegation - believed to be the president Alan McRae and the chief executive Stewart Regan.
Discussions are understood to have revolved around O'Neill's role, as well as Scottish football more generally. Both parties will now take time to reflect.
The 48-year-old was given permission to speak to the SFA in November and a £500,000 compensation package is thought to have been agreed between the SFA and the Irish Football Association (IFA).
Talks have been ongoing for weeks and the SFA have prepared a four-year deal for the man they want to be their new manager.
However, the IFA are confident of keeping O'Neill and have offered him a deal until 2024 worth £4m.