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Has Simon Grayson just suffered his first transfer blow at Sunderland?

Sunderland's Stadium of Light (Reuters)
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Sebastian Larsson has decided that he will not be returning to Sunderland following their relegation.

According to a report in the Sunderland Echo, Sunderland midfielder Sebastian Larsson will not be signing a new contract at the Stadium of Light.

Larsson has expressed a desire to play at the top level, and appears to have turned down the opportunity to stay on Wearside.

The Swedish international has interest from Brighton & Hove Albion, according to the Sunderland Echo, and will now be on the hunt for a new club.

Sunderland's Sebastian Larsson looks dejected

Sunderland had been prepared to offer Larsson a new deal earlier this summer, but he seems to have decided that a move away is the best option.

Simon Grayson’s first transfer blow?

Things have gone swimmingly for Simon Grayson in the transfer market since joining Sunderland, but Larsson’s departure could be a blow.

Larsson may not have shown his best form last season, but he could have been a useful option in the Championship.

The 32-year-old possesses good technical ability, and his set pieces would have been a big threat in the second tier.

Sunderland are likely to want to replace Larsson, with Grayson expected to bring in a number of new players before the start of next term.

Preston manager Simon Grayson