The Norwegian manager, who joined the Hoops in 2014, will leave the Scottish Premiership giants this summer, with the Scottish Cup exit by Rangers last week appearing to have had scuppered his chances of staying on beyond this season.
A whole host of names have been linked with the position, with ex-Manchester United, Everton and Real Sociedad boss David Moyes the bookmakers' favourite to land the job, according to BBC.
But Celtic hero Stiliyan Petrov threw Larsson's name into the ring this week via The Mail.
Although Sutton is convinced that the 44-year-old - currently in charge of Helsingborgs in Sweden - could do a job, the ex-striker believes a more experienced manager should be appointed.
"Henrik Larsson? I’m not sure it would be fair to give him job with the team and structure in such a mess," he told the Daily Record.
"I’ve no doubt he could do the job, but right now, this is a job for a more-senior boss, for recruitment as well as organisation."
The iconic Larsson would undoubtedly restore a feel-good factor at Paradise, but he does have only four years of managerial experience and he would certainly represent another gamble by the board.
Deila hasn't been all bad, and he is likely to win his second Scottish Premiership title, but a lack of progress in the Champions League has been his undoing.