The Croatia international striker has spent the past few months deliberating where his long-term future will lie.
He has admitted to being tempted by the opportunity to test himself in the Premier League, with Stoke having made every effort to take him to the Britannia Stadium.
Mark Hughes has, however, been left empty-handed by Olic's penning of a contract extension at Wolfsburg.
The 35-year-old has thanked Stoke for their show of faith and admits it was a tough call to turn them down, but says tearing himself away from his Bundesliga employers would have been even harder.
Olic told Juternji List: "I have spent a lot of time weighing up both offers. I wrote a list of the pros and cons.
"I'm very proud of the fact that I was wanted by a club from England, but also of the fact that Wolfsburg wanted to keep me.
"The key match was against Hamburg last weekend. I felt great there. After that I said to myself, 'Ola, that's it, if you are 35 years old and you still enjoy it, why change things?'
"I would be very sorry to jump this ship."