The Croatian striker has impressed when scoring 16 goals in 29 appearances this season but he is facing an uncertain future after Bayern announced the signing of Polish superstar Robert Lewandowski.
The 27-year-old now looks set to move on and Chelsea are said to be among the interested parties as Jose Mourinho looks to shake up his attack in the summer.
Arsenal have also been heavily linked along with Wolfsburg but sporting director Klaus Allofs has played down talk of a swoop and has denied suggestions an agreement is already in place.
"There is no agreement over a re-signature of Mario Mandzukic. This is definitely not an issue," he said. "Of course, we will always keep our eyes and ears open. We will not discard any good player from our short-list as there is no need to do so."