On Thursday afternoon the veteran striker, who has made 90 appearances for his national team, put pen to paper on a deal that ties him to the club until 2016.
Eyes on Europe
The 34-year-old joined the Wolves from FC Bayern München in the summer of 2012 and has since gone on to register 22 goals and 11 assists in 61 appearances for the Lower Saxony outfit.
"I'm very pleased to have cleared up what my future holds and to continue playing for VfL Wolfsburg," explained the Croatian, whose side currently sit in fifth place. "We want to go on the attack in both the Bundesliga and Europe next season. It's incredibly fun to be a part of this squad and my family are very much at home here."
'An important stone in the mosaic'
Olic's experience could prove pivotal should the Wolves achieve their targets and sporting director Klaus Allofs was delighted to have secured the striker's services for a further two years, especially in light on the rumours of interest from abroad.
"When a leading figure like Ivica Olic, who was approached by several clubs both foreign and domestic, decides to continue his career in Wolfsburg it shows that our players believe in the path we're on," said Allofs. "His contract extension is another important stone in our mosaic for planning ahead of the upcoming coming season."