On 15 April 2011 he signed a contract with AC Omonoia, and managed to lead the team to the Cyprus Cup Final against Apollon Limassol. Omonoia would go on and win the final after a penalty shoot-out.
The 2011-2012 season did not start off without controversy for Larkou. While he had Omonia in first place, and on the right path, and playing excellent football, he along with president Miltiadis Neofytou, were accused, by a referee, for allegedly attacking him after a match. To make matters even worse, the Cyprus Football Association not only found them both guilty, but decided to discipline Larkou and Neofytou at the maximum possible level: a 6 month ban from the pitch. This would be the first time in his 28 year football career, Larkou faced any type of suspension. After a series of unfortunate results Larkou stepped down as coach of the club on 19 September 2012.