While at Anderlecht, Olsen became the seventh Dane to play 50 games for the national team, in June 1981. For Olsen's 53rd national team game in April 1983, the German national team manager of Denmark, Sepp Piontek, named Olsen permanent national team captain, as Olsen replaced the retiring Per Røntved as both libero and team captain. Olsen played as an attacking libero, and had defensive midfielder Jens Jørn Bertelsen cover for him when he was on the attack. Olsen, alongside defender Søren Busk, persuaded Piontek to implement the aggressive off-side trap they practiced at Anderlecht.