The 32-year-old Croatia international, who has been at Bayern since 2009 but has spent most of the season on the bench with Bundesliga top scorer Mario Gomez the undisputed first choice, will join Wolfsburg on a two-year contract.
"Ivica is the absolute professional," said Wolfsburg coach Felix Magath. "His will, running and passion are exemplary. I am convinced he will lift our team with his qualities."
Olic can still win his biggest trophy yet before leaving Munich with his team through to the Champions League final against Chelsea at their own Allianz Arena on May 19.