The Mirror claimed http://m.mirror.co.uk/article?id=1138739/
I personally have heard from trusted friends who 'know people' and they are sure he's coming back.
The Guardian's Scott Murray wrote today
Craig Bellamy is off to a club that effectively doesn't exist any more: the redbirds of Cardiff City. God speed, people of Cardiff, it's not too late, you can do this, we're all behind you.