Larsson is out of contract this summer and will be leaving St Andrews on a Bosman free transfer.
The Sweden international has been involved in unsuccessful talks over a new deal during the past 12 months.
But a new offer has not been forthcoming, after Blues decided in January to keep Larsson for the remainder of the campaign, and he will be leaving after their relegation from the Barclays Premier League last weekend.
The likes of Sunderland, Newcastle, Stoke and Blackburn are among those to have been linked with the Swede.
The 25-year-old joined Blues from Arsenal in 2006, initially on loan before making a permanent £1 million move.
Larsson submitted a transfer request at the turn of the year and came close to joining Newcastle in January before Blues did a U-turn and opted to retain his services.
In total, he made 204 appearances for Blues, scoring 19 times, and was a dead-ball specialist as well as one of their most consistent performers.
Alexander Hleb, David Bentley, Obafemi Martins and Matt Derbyshire have already left Blues at the end of their loan spells.
Source: PA
Source: PA