Mr O’Neill died after being stabbed on Tuesday night at Fallahogy Terrace in the Tamlaght O’Crilly area, close to Kilrea on Tuesday August 29.
The man who has been charged is due to appear before Bishop Street courthouse in Derry on Thursday morning, August 31, for a first remand hearing.
Mr O’Neill has been described as a quiet and hard-working man whose death has “shaken the whole community”.
The 56-year-old had worked at FP McCann Limited, a quarrying company in Magherafelt, and was originally from the nearby area of Lavey.
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