Niklas Gudmundsson came to Norwich on trial during the 1994-95 season and played for the Reserves in a 1-1 draw with Ipswich. Norwich did not pursue the signing of the then-Halmstad striker any further. He joined Blackburn Rovers the following season and played in the Premiership for them (6 appearances). He spent a considerable part of the 1996-97 season back in East Anglia on loan to Ipswich for whom he made 7 appearances. Blackburn sold him to Malmo for £300,000 in the summer of 1997.

Niklas is still with Malmo although in December 1999, it was reported that newly promoted Norwegian First Division side Byrne FK had inquired after his services.