Litmanen's return to Finland, where he joined Lahti, was much hyped and was hailed as "the return of the king". Litmanen, however, moved to German Bundesliga strugglers Hansa Rostock in January 2005, but he was unable to prevent them being relegated, which ended his stint at the club.
Litmanen joined the Swedish club Malmö FF in July 2005 in an attempt to help them qualify for the Champions League. This attempt, however, failed, and Litmanen himself was injured during the whole of the autumn, only making a few appearances. He decided to continue his career with Malmö in 2006 but was again sidelined with a number of injuries for much of the season. However, the matches he did play showed he remained a brilliant player when fit. After an operation to repair a damaged ankle during the winter break, Malmö decided to extend his contract over the 2007 season, but an ankle injury suffered in June 2007 forced Litmanen to cancel it.
Litmanen became a father in November 2005 when his Estonian girlfriend Ly Jürgenson gave birth to a son named Caro. The couple's second son, Bruno, was born in September 2007. Although they avoid too much publicity, they are sometimes seen together in public.