The 32-year-old joined Bayern from Hamburg in the summer of 2009, and has since made over 75 appearances for the Bavarians. Nevertheless, he has been struggling to secure regular first-team football under head coach Jupp Heynckes.
Therefore, the Croatia international has opted to move on this summer in an attempt to earn more game time elsewhere.
"It is true that I have signed a contract with Wolfsburg. I am very pleased about it, and have informed the people at Bayern of my decision," Olic was quoted as saying by Sport Bild.
Olic will reportedly earn an annual salary of €6 million (£4.9m) at the Volkswagen Arena.
The attacker had also caught the attention of Lazio, but Olic was not interested in a move abroad for family reasons.
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