Larsson Talks Denied
The rumours all came about after O'Neill was seen at a sporting dinner with the Swedish striker, who played under the Villa boss during his time with Celtic.
"There's absolutely nothing in it, nothing at all. It's a story that always seems to grow arms and legs, but it's got nothing in it," the Villa boss has told the clubs official website.
"Henrik Larsson has made it abundantly clear that he wants to remain in Sweden with his family. That's what he's made his mind up to do ad I would respect that.
"I was at the same table as him last night, as he was inducted into Scotland's Hall of Fame along with John Robertson.
"But people see us sitting together and think there's something to it. That's just not the case and it won't be happening."