The former Bayern Munich striker, Olic Thursday signed a two-year deal that binds him to the club until June 2016, reports Xinhua.
The 34-year-old striker thought of a transfer to Premier League side Stoke City after Wolfsburg only offered him just a one-year contract with an option. However, the club reconsidered their offer and were able to convince Olic.
"I am very happy that I now have clarity about my future. We want to attack in the Bundesliga and in Europe in the upcoming season. It makes a lot of fun to be part of this team," Olic said.
The striker moved from Bayern Munich to Wolfsburg in 2012 and has scored 22 goals in 61 appearances. Besides that, he has been part of the Croatian national team since 2002, where he has scored 18 goals in 90 caps.
"I am pleased that Ivica will stay with us. We no longer need to waste words about his qualities," Wolfsburg coach Dieter Hecking said.
The "Wolves" are currently fifth with 53 points, just one point away from a UEFA Champions League playoff spot.