Frankfurter Rundschau reports that neither Larsson nor Eintracht Frankfurt wanted to go their separate ways this summer, but that the Bundesliga club came under significant financial pressure to sanction a sale before the window closed.
Fulham's move for the Sweden international was completed on deadline day, with the Premier League club paying an initial loan fee before a fixed obligation to buy worth around £25m next summer.
The switch also carries a financial windfall for Malmö FF, who sold Larsson to Frankfurt in 2023 and retained a 15 per cent cut of any future sale profit as part of that original agreement.
Larsson made an immediate impact after his move to Germany, establishing himself as close to a guaranteed starter for Frankfurt and drawing sustained interest from Premier League clubs over the past two years, including reported enquiries from Manchester United and Newcastle United earlier in the window. He went on to score ten goals and provide seven assists in 119 competitive appearances for the club, underlining the consistency that made him such a wanted figure across multiple transfer windows before his eventual departure.
For Frankfurt, the sale reflects the financial realities facing several clubs in Germany's top flight, where retaining top performers has become increasingly difficult against the spending power of the Premier League, even when both player and club would have preferred to continue working together.
The situation echoes a familiar pattern for mid-table Bundesliga clubs, repeatedly forced to sell their most valuable assets to balance the books even in years when results might otherwise have justified keeping a squad together.
Frankfurt's sporting management have not commented publicly on the specifics of the financial pressure described in the report, but the club's recent transfer history suggests player sales have become a structural necessity rather than an occasional choice.
For Fulham, meanwhile, the deal represents a significant statement of intent in the middle of a busy deadline day that also saw the club complete moves for Manuel Ángel and David Affengruber, giving manager Álvaro Arbeloa considerably more depth across midfield and defence heading into the new season.