Matheson qualified that Larsson would need to agree to a return to Edmonton, and that's may be a tall task to ask. He clearly has serious and unfortunate negative connotations with the city that he may not be able to get past. It's entirely his choice whether he could go to Edmonton, as he has a 10 team no-trade list in his contract.
Aside from the fact that he has a dark personal history with the city, Larsson would be a great fit for the Oilers. His reliable, physical, and defensive style is exactly what needs to be paired with Darnell Nurse, and his archetype of defenceman always excels in the more rugged playoffs. He has just one year left on his contract with the Seattle Kraken, and if they're out of playoff contention, they'll likely look to trade the 31 year old.
Aside from Larsson, the Oilers have been connected to a number of other top four defenceman in trade for this season. It's clear that the team believes they need an impact defender to win the Stanley Cup this season, so be on the lookout for the Oilers to make a move early on.