O'Connell began presenting the programme, produced by Evans' TV company UMTV, in February this year. He replaced Radio One DJ Chris Moyles, who was dropped by Evans after the first series bombed in the ratings.
Moyles' show is understood to have peaked at around 400,000 viewers following significant promotion by Five.
However, since O'Connell has been hosting the show the audience is reported to have stagnated at around 200,000, despite wide-ranging acknowledgement that he is more entertaining than Moyles.
Five said it would not make a decision on the show until the summer, while sources close to O'Connell said he had only signed up for one series in the first place.
However, his TV career is not believed to be over as Five has confirmed he is to present a weekly late night show called 'Pub Ammo', which goes into production by Tiger Aspect shortly.
If 'Live with...' is axed it will be a blow to Evans, who has just found out that 'Boys & Girls' has been ditched by Channel 4.
Evans will be hoping that his new daytime show for Five, 'The Gaby and Terry Show', hosted by Children in Need presenting team Gaby Roslin and Terry Wogan, will do better.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .