Larsson was in attendance as the Blues lost 1-0 to Accrington in League One at the weekend.
While there are other managers interested in the job, including Kevin Bond and caretaker Gary Waddock, Larsson is the high profile option.
"We know the qualities within the manager that we are looking for but the combination of those characteristics or persons are not always available and it's right we carry out, as we are, proper due diligence in arriving at the right choice," Martin said to reporters.
"Henrik Larsson is obviously one of the individuals that we have been interviewing but he is not the only candidate and no decision has been made as I write this statement.
"I am going to Stockholm in the morning, back in the afternoon, to meet potential 'back room staff' but that's it, gathering information. There are five shortlisted candidates and Gary Waddock is certainly included.
"It's sometimes difficult for the assistant to step into the shoes of the manager but in this instance Gary has had very considerable experience and he is well-placed to stamp his authority."