The Volkswagen Arena outfit are eager to add more firepower to their team and they see the 32-year-old Olic as a valuable addition to their squad.
However, Magath acknowledged that it all depends on whether Bayern want to sell.
"He (Olic) would fit in here. And as far as I'm aware of the situation, he is open to a move," Magath told German newspaper Bild.
"He will probably play at his last big tournament at Euro 2012 this summer, and he wants to play in the build-up. However, the question is whether Bayern are ready to sell him."
Magath also acknowledged the skills of Arsenal midfielder Tomas Rosicky, who comes out of contract in the summer.
"He (Rosicky) is a good player, no question. A few years ago, the top clubs were chasing him," Magath said of the Czech Republic international.
But the Wolfsburg boss admitted he did not know who would join his side next month.
"But I'm not a dreamer who believes that we can play with this team for our European mission," he said.
"We lack a top player, one who stands out through performance or personality."
Bayern Munich have so far insisted that they are not off-loading any players in the winter transfer window, meaning that Wolfsburg could face a tough task attempting to lure Olic away from the Allianz Arena.
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