The 23-year-old has made more than 150 appearances for the Gunners since graduating from the club's youth ranks in 2005, scoring 43 goals.
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However, the Danish international - who has won 38 caps for his country - has steadily fallen down the pecking order in North London, with manager Arsene Wenger selecting Bendtner on just 17 occasions in the Premier League last season.
As a result, Bendtner is destined to leave the club this summer, with Fulham, Aston Villa, Bolton Wanderers, German champions Borussia Dortmund, fellow Bundesliga outfit Hamburg and Sporting Lisbon all linked with the front-man.
And Olsen has urged him to seal a deal with another club before it's too late and he ends up watching on from the sidelines again in 2011/12.
“No footballer wants to look back on a career as a 35-year-old and remember that you sat on the bench constantly,” he told sporten.dk.
“Nicklas must play now, and he knows that too. I also think that Nicklas is showing maturity by leaving Arsenal. He loves the club because he has been there since he was quite young, but it’s time to start over again.
"He needs a club where he can start from scratch, and it must happen with some humility.”
Olsen added that Germany would be a good move for the Dane.
“It’s a great place to come to develop and it would also be a great league for Nicklas. There is tremendous competition, large modern stadiums and good money. More and more of the biggest players take to the Bundesliga. It’s almost become trendy!”
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