The veteran has also played for a number of teams including CSKA Moscow and Dinamo Zagreb, and most recently, VfL Wolfsburg.
The Croatian has signed an 18 month contract to rejoin die Rothosen. Olic said: "I had a wonderful time at Wolfsburg and I am proud to have been a part of this team. The return to Hamburg is another massive challenge.
"If I had ever thought of moving, then it would only have been to Hamburg. They got in touch and told me that they desperately wanted me and that I should help get them out of this difficult situation, and that is what I want."
Olic has made the switch from a side sitting second in the Bundesliga, battling for a Champions League spot, to a team fighting against relegation.
