Magath, who led Wolfsburg to their first Bundesliga title in 2009, has had a far less successful second stint after joining late last season.
Wolfsburg, who avoided relegation on the last matchday, are currently in 14th place, two points above the drop zone.
"[Tomas] is a good player, he is fit no question about it," said Magath about the 31-year-old Czech midfielder who has had numerous injury problems in recent seasons. "Only a few years ago every top club was after him," he told Bild newspaper.
Olic, 32, has repeatedly said he is unhappy to be playing second fiddle to Bundesliga top scorer Mario Gomez and was eager to move ahead of Croatia's appearance at the European Championships in June.
"[Olic] could fit. As I have understood it, he has said he wants to move. In the summer he will play at the Euros which will be his last big tournament and until then he wants to play," Magath said.
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