Mijailo Mijailovic, 25, had maintained he had nothing to do with the Sept. 10 killing, but chief prosecutor Krister Petersson said Mijailovic confessed during questioning, the London Telegraph reported Wednesday.
If convicted, Mijailovic faces a sentence of 10 years to life. However, he may face a psychiatric examination, and if found mentally ill would be given treatment and not go to jail.
Police have said they have DNA evidence linking Mijailovic to the murder weapon. He was arrested in Sweden Sept. 24. No motive for the crime has been established but it is not believed to be linked to Lindh's political stance on the euro.
Lindh, 46, a leading polititian and pro-euro champion, was stabbed in the chest while on a shopping trip in Stockholm.
The woman was married with two children, and died the day after she was attacked in the Nordiska Kompaniet department store near the parliament building.