“I’m very happy,” Larsson said in an SVT interview after signing the 18-month contract.
Larsson will move into his newly-completed house in Helsingborg in southern Sweden and play for the local club, as well as the Swedish national team.
“I am a Helsingborger at heart … I have built a house in Helsingborg. For me there was no other alternative,” he said, pointing out that he had been playing for European teams since 1993.
“We’ve had many good years, but there is a time for everything,” he said, adding that he was looking forward to spending more time with friends and family.
“That’s the only thing I’ve really missed since I moved away … Now it will be possible to be a bit more spontaneous and see people when I feel like it,” he said.
Barcelona had offered to extend Larsson’s contract for another year, for a reported 18 million kronor, and the striker announced in October that he would accept, but later changed his mind.
Larsson’s stint at the Spanish superclub was marked by lengthy injury periods and competition with Barcelona’s other world-class strikers, meaning he spent much time on the bench.
On Thursday however, he said his “Time here has been good. I have come to know another culture.”
The 34-year-old said that after his injury he had initially planned to wind down.
“But when I came back after the injury I felt that I had a lot left to give on a high level. And even though the Swedish championships are at a lower level than here, I feel that I love playing football, and I want to continue doing so as long as possible.”