The Brazilian made 36 appearances in all competitions under Jupp Heynckes last term as Bayern won the Bundesliga, DFB-Pokal and UEFA Champions League.
However, his position in midfield has been threatened by the arrival of Thiago Alcantara from Barcelona, with the 22-year-old starting in Saturday's 4-2 DFL Super Cup defeat to Borussia Dortmund.
But Wolfsburg, who finished 11th in the German top flight last season, could be set to offer the former Hoffenheim star regular football during a World Cup year.
"When the speculations about Bayern having too many midfielders came up, we said that Luiz Gustavo would be a player who’d fit us very well in terms of his quality," Allofs told SID.
"However, initially there are a lot of obstacles standing in a way in order to complete a deal. We already talked to his agent and informed Bayern about our interest, but so far, that’s all."
One man who is familar with the process of swapping Bayern for Wolfsburg is Ivica Olic, with the Croatian striker having made the switch in 2012.
But the 33-year-old has now explained that next season, his second at the Volkswagen Arena, is likely to be his last in German football.
"This is probably my last year in the Bundesliga," he told Bild.
"If my body allows it and I am still fit, then maybe I will play on for a year in the USA or in Dubai after my Bundesliga career."
