Pedersen, 29, chiefly plays as a left-back and was snapped up by Swansea on deadline day and handed a two-year contract at the club.
Duff was keen on bolstering his full-back options in a bid to hone his team’s defensive displays.
He got his man and according to Danish daily BT, the defender’s move to Wales has cost the Championship side no fee.
However, it is also claimed that Koln retained some influence in the deal and ensured some money could flow back to the club through bonuses.
What the bonuses are and how they might be triggered for payments to be made are unclear.
Swansea are currently languishing in 20th position in the Championship standings amid their hopes of seeing themselves in a promotion tilt this season.
And Pedersen’s inclusion in the Swans squad could provide the Welsh outfit a defensive fillip.
Now it remains to be seen how the Danish star will contribute to Swansea’s campaign moving forward.