Larsson, 37, was linked with a return to England during January after the expiry of his previous deal with Helsingborg, but has opted to remain with the club where he began his career in 1992.

A statement on the club's website today said that although there remain some details to be finalised, Larsson should sign his contract within the next two weeks.

"It is with pleasure we can announce that Henrik Larsson will continue with football and HIF in 2009," the statement said.

"The reports in the media have been plentiful during the winter, but Henrik will continue where he left off last season."

Larsson signed for Helsingborg in 2006 after a stint with Barcelona, signing off by setting up both goals in their 2-1 Champions League final win over Arsenal.

Larsson has also played for Feyenoord, Celtic and Manchester United during a distinguished career.