Magento - How to add external link to an image in XML?

For side blocks in magento, If you want to add an image just add the below code to your theme's catalog.xml file (app/design/frontend/default/{Your theme}/layout/catalog.xml) in the left block - "<reference name="left">"
<reference name="left"><block type="core/template" name="left.permanent.callout1" template="callouts/left_col.phtml"><action method="setImgSrc"><src>images/imagename.png</src></action></block></reference>

To give link to the above added image, Insert the below line of code next to "<action method="setImgSrc"><src>images/imagename.png</src></action>" as shown below: (below the image link is given as contacts)
<action method="setLinkUrl"><link_url>contacts</link_url></action> 




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