Gudjohnsen, who spent the latter part of last season on loan with Tottenham, had been pondering a move to join Mark Hughes at Fulham just hours after Stoke had come close to agreeing terms on a similar 12 month deal.
According to reports, Monaco favoured the Fulham move after the club agreed to make a £2m contribution towards the Icelandic player's salary. But Stoke eventually rubber-stamped the loan move for Gudjohnsen, just before the transfer deadline passed at 6pm.