Saints won't be able to Nilsson impressed in Euro 2004 with his versatility and ability on the right side of midfield. His arrival may mean that Fabrice Fernandes switches ot the left flank, although Sturrock is still keen to bring in DeMarcus Beasley in that position.
Nilsson, 26 has signed a four year contract with Southampton which currently will begin on 1st December 2004.
Nilsson said: "I am delighted to be joining Southampton. It is a good club with great facilities and some tremendous players and I am very excited by the challenge. The last few weeks have of course been dominated by Euro 2004 but I am glad this has all been sorted out and I cannot wait to get here."
Rupert Lowe said: "We are bringing him in as a right midfielder but he is a very versatile player. He did very well in Euro 2004 and is a quality player with a lot of experience. We are still hoping he will be here in time for the new season but that depends on negotiations.
"We have made a substantial offer to buy out the remainder of his contract but if we cannot reach agreement then he will come here in December."