They were keen to have a new coach installed ahead of their opening World Cup qualifier, away to Pakistan on October 8.
Olsen, who once famously said Brazil would be better if he coached them, led Norway to the World Cup in 1994 and 1998, when his team beat Brazil in a group match.
At the height of his popularity in the 1990s he was a national hero and even had brands of ice cream and sausages named after him.
However, Olsen could not repeat his success at club level and was sacked by Wimbledon before they were relegated from the Premier League in 2000.
