Blues chairman Ron Martin revealed in a club statement on Friday that an appointment is close to being made.
And Larsson, 48, who has watched Blues twice this season, is now the firm favourite to be the next manager with Kuyt as his No 2, says The Echo.
Celtic forward Tommy Johnson is also expected to join the new look set up.
Former Manchester United striker Larsson's last job was with Swedish top flight club Helsingborg.
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