The 22-year-old left-back has signed a new five-year contract at Ewood Park after a successful campaign in the Premier League last term.
Olsson looks to have a bright future at Blackburn, and his agent Jonas Wirmola reveals there was strong interest from Spain.
"Manager Sam Allardyce has got a lot of confidence in Martin," he told Sportbladet.
"There was interest from Atletico Madrid and Valencia.
"But Martin will now get the chance to progress in the best league in the world."
Olsson made his debut for Rovers in the 2007/08 campaign, and is highly regarded at Ewood Park.