Little was speaking on Triple M radio station the morning after Hird's wife, Tania, revived claims AFL CEO Andrew Demetriou tipped-off the Bombers about the supplements scandal.
Asked if Hird's position was becoming untenable, Little said: "Up until the events of the last 24 hours we believed James was acting and responding to our request in a positive way.
"The club will need to meet now to determine how we go forward in relation to the James Hird issue and probably the broader group that surround James."
On Thursday night, Tania Hird, who is a lawyer, told ABC's 7:30 she was listening on a speaker phone when her husband spoke to former Essendon chairman David Evans on July 25.
"I was taking notes - I take a lot of notes," she said.
"David admitted that he said to James 'go into ASADA and tell the whole truth, but don't say what Andrew Demetriou told us'.
"It has been referred to as the tip-off.
"James did say in return 'if I'm not asked about it, I won't offer it up, but if I'm asked about it, like anything I'm asked about, I will answer it honestly and truthfully and to the best of my knowledge'."
Little described the decision to revive the allegations - which the AFL boss has strenuously denied - as "disappointing".
"It will not go away," Little said.
"It's well-documented now we've been working incredibly hard right across all facets of the club now for the last 6-9 months to turn the club around, focus on the future and move away from the dispute of last year."
"It is disappointing."
Collingwood president Eddie McGuire, who conducted the interview on his morning radio show, tipped Hird would not coach Essendon again.
"I'm going to make a bold prediction: I don't think we'll see James Hird coach Essendon again," McGuire said.
"I think it's more to do with the camp around James Hird and the advice he's getting and clearly that advice is contrary to the advice the chairman of the Essendon Football Club, who appointed James for two years, has been giving.
"They'll (the Hird camp) argue it was Tania having her say or whatever the case may be.
"But it was a pretty direct question and I think a pretty direct answer."