Mark Hughes has been very keen on landing the 34-year-old striker and has held talks with the Croatian, who is out of contract in the summer.
Olic has spoken about being impressed with Stoke and his desire to play in the Premier League.
However, Olic now seems set to stay at the Volkswagen-Arena and sign a new deal with Wolfsburg.
"My thought is to stay on at Wolfsburg," he admitted to kicker-Sportmagazin.
"I am expecting to remain at Volkswagen-Arena and be a part of this squad also in the new Bundesliga 1 season."
Olic has scored 12 goals in 28 matches for Wolfsburg this season.