Souness reveals Larsson snub
Larsson, who scored two goals in Saturday's Cup final win over Dunfermline, is to leave Celtic in the summer after seven glory-filled years at Parkhead.
The prolific Swede is available on a free transfer after seeing out his contract at Celtic and his signature is set to be one of the most sought-after in Europe.
Souness had targeted Larsson as a possible addition to his squad for next season, but the Swede told the Ewood Park chief he wanted to go somewhere with a warmer climate.
"It would have been a fantastic signing for us, but he told me he wanted to go somewhere sunny, " said Souness.
Larsson has been strongly linked with a switch to Spain, but the former Feyenoord ace insists if he does not get an attractive offer he would have no problem hanging up his boots.
"What will be will be. If nothing comes up for me than I'll just hang up my boots."
Meanwhile, Celtic boss Martin O'Neill has revealed that the door remains open for Henrik Larsson to stay at Parkhead if he wants to.
O'Neill is hoping that Larsson, who has a farewell match with Seville on Tuesday, may make a U-Turn on his decision to leave like he did when he had a change of heart to come out of retirement for Sweden for Euro 2004.
"The door is open and it is a wide door so he can walk through it any time he wishes.
"He has known that for some time though I don't think it is on his agenda.
"When you saw the scenes last week I don't think he will be staying.
"He knows the option is here, he does not have to be reminded every 15 minutes. I will phone him at 4am in the morning to see how he is!
"He knows that is an option if he chooses to take it."
O'Neill is still resigned to losing Larsson and is stepping up search for a replacement.
"There is no doubt there is another Henrik Larsson out there. You might have to go Inter-Galactic to find him," added O'Neill.
"There are players who will be able to score goals in the side. John Hartson coming back should be good news.
"I think the squad needs some strengthening in depth, at least four players because of the loss of Henrik and Liam Miller and the injuries to Shaun Maloney and John Kennedy.
"Henrik's a massive loss but we have to go and try and find someone.
"Eventually someone else will come in - and it might take us a wee while - and do his own thing.
"It might not be what Henrik did, but we are hoping that sort of person exists with a bit of luck."
