It has been speculated that the former Arsenal midfielder could leave Blues this summer, despite the club planning for their return to the top flight.
But Larsson has revealed discussions are under way over fresh terms, although he is in no hurry to secure an extension.
"Nothing is done yet," Larsson told Fotbollskanalen. "I was offered a contract this spring but the timing and the circumstances weren't the best.
"We have now started new discussions, so we will see where we end up. There is no stress from any side. We want the same thing in the end."
The Swede also spoke of the Blues' opening game of the new season that sees them take on Premier League champions Manchester United.
He added: "We feel no pressure."