The 48-year old Dane played with head coach John van't Schip at Dutch club Ajax and was also a regular in the Denmark national team throughout the 1980s.
Olsen has been living in Melbourne for the past few years after a career that took him from Denmark to Holland to England back to Denmark and finally to France.
Another name linked with the role is former Socceroos striker and current Young Socceroos assistant Ante Milicic.
The 35-year old recently has had brilliant playing career in Australia that also took in stints in Holland with NAC Breda and Croatia with NK Rijeka.
He has spent many seasons with state league team Sydney United before playing in the A-League with the Newcastle Jets and Queensland Roar before having a short stint in Malaysia with Shahzan Muda before returning to Sydney United where he is currently coaching.