Speaking after last Saturday’s defeat at Millwall, Sheehan confirmed talks had taken place over a long-term contract and said a decision on his future would be made this week.
He has always been interested in taking the role on a long-term basis, though he has repeatedly stressed that his ideas on the way forward must align with the club’s vision.
A former coach at Luton Town and Southampton, Sheehan joined Swansea as an assistant head coach in the summer 2023.
Having initially been part of Michael Duff’s backroom staff, Sheehan first took over as caretaker boss in December 2023, when he helped Swansea claim 11 points from seven matches before the appointment of Williams in January last year.
Sheehan returned to the backroom team before stepping up to the top job for a second time when Williams said his farewells.
At the time, Swansea were eight points clear of the bottom three in 17th, but they have since delivered a remarkable upturn in form to climb to 11th in the table.
After the Millwall loss ended Swansea’s very faint play-off chances, they finish the season with a home game against Oxford United on Saturday (12:30 BST).