Birmingham City yesterday completed the signing of Chris Sutton from Celtic on a free transfer, heading off interest from Blackburn Rovers and Everton. However, reports that the Premiership strugglers are looking to further bolster their attack by luring Henrik Larsson from Barcelona are understood to be wide of the mark.

Sutton, who last played in the Premiership for Chelsea five years ago, has agreed a six-month deal at St Andrew's on around £30,000 a week. His salary will be funded by Birmingham's co-owners David Gold and David Sullivan, who have promised to finance the arrival of more players before the transfer window closes.

"If we don't get relegated we will be paid back our money," said Gold, "but if we do get relegated then we don't take down a burden of debt."

Larsson, however, is not thought to be among Steve Bruce's potential targets despite the suggestion that Birmingham had offered the Sweden international a two-year contract worth £55,000 a week.

The Birmingham manager is, though, still in the market for "maybe a couple more strikers", with the Poland international Grzegorz Piechna attracting interest.

Sutton, who is likely to make his debut against Charlton on Saturday week, offers Bruce options in defence, midfield and attack, though the Birmingham manager is intent on using him alongside Emile Heskey.

"I have got him as a striker to give us a hand," said Bruce. "He is a top-class centre forward who has been at the top of his profession for the past 15 years and we are delighted that we have got him."

Sutton's decision to leave Glasgow was described as a "huge disappointment" by Gordon Strachan, though privately the Celtic manager has long been resigned to losing the former Norwich forward.

His contract was due to expire at the end of the season and although Celtic had an option to extend the deal, they were unable to do so on the same personal terms.

It was notable that Sutton, who started only seven league matches under Strachan, omitted to mention the current manager when he reflected on his time in Scotland.

"I had five great years at Celtic under Martin O'Neill," said the 32-year-old, who scored 86 goals in 199 appearances. "It has been very disappointing for me to leave Celtic but, under the circumstances, I felt that I had been left with no choice."

Gold hopes that Sutton will have a similar impact at St Andrew's as Christophe Dugarry did three years ago. The Frenchman played a key role in helping Birmingham maintain their Premiership status when he arrived from Bordeaux at the same time of year.

"We need a catalyst," said the Birmingham chairman.

Sutton's arrival is expected to pave the way for the Uruguayan Walter Pandiani to return to Spain.

Meanwhile, Preston manager Billy Davies continues to test Celtic's resolve over midfielder Stephen Pearson. Strachan insisted the 23-year-old would not be leaving the club before the end of the season. But the Deepdale manager has made an undisclosed bid for the player, while his agent, Willie McKay, has admitted Pearson would consider a move to the English Championship side.

"We made the inquiry and now we've made the move. Maybe, with the appearances he's made for Celtic, the opportunities may lie elsewhere and we're hoping something can be done, " said Davies.

Larsson has confirmed he will leave Barcelona at the end of the season and hopes to return to play in his native country.

"I took the decision in October and then spoke to the club. I was flattered they offered me another year on my contract but I couldn't accept it," Larsson told Barcelona's official website yesterday. "I have been away from Sweden for 12 years. My daughter is growing older and I want her to know the Swedish way of life. The plan was always to return home after the two-year contract with Barcelona," said Larsson, who joined the Catalans from Celtic in 2004.