The Swedish legend was seen as the favorite for the job, but it appears that any deal is now dead in the water.
Sportbladet says Tommy Johnson was set to take over as the head of recruitment at the club.
It was part of the deal to bring Larsson as manager.
Johnson is backing out and is taking another job, which means Larsson is reconsidering as well.
Larsson told the Swedish newspaper: "I was ready to sit down on a plane, fly over and sign on. Everything was basically clear.
"Johnson felt important because he knows this league.
"Of course it's sad. At the same time, I know how this business works. Nothing is done until everything is signed."