The 24-year-old goalkeeper enjoyed an impressive domestic campaign with Odd last season, managing eight clean sheets in the 17 matches he played for the club.
His performances caught attention with Danish club Brondby even going on to reach a verbal agreement for his signature.
In accordance with that Wahlstedt was set to travel to Copenhagen to undergo medical tests on Tuesday before signing a four-year deal.
However, his journey has been postponed following the arrival of English Championship side Blackburn Rovers on the scene.
According to Norwegian outlet Nettavisen, Blackburn Rovers have now submitted an official bid for Wahlstedt and their bid is higher than the sum Brondby are offering.
Blackburn have kept an eye on the player for most of the summer but have only managed to table an offer now.
The Ewood Park outfit could well want the goalkeeper to replace Thomas Kaminski, who is being chased by Luton Town.
Wahlstedt earned his international debut for his country Sweden in January this year.
