Olsson was a long-time veteran of the Volvo Ocean Race (VOR), beginning in 1985 when it was known as the Whitbread Round The World Race and last competing in the 2008-09 edition.
Most recently he was coaching the all-women Team SCA in their preparations for the 12th edition of the race starting this summer.
"It's with great sadness I received the news about Magnus passing away," said VOR chief Knut Frostad. "He was my mentor when I sailed around the world with him 20 years ago.
"He was the inspiration for me and for so many more and more than anything he was the smile of the race," he continued. "A true friend has left on his final leg and the sailing world will never be the same without Magnus and his smile. Never. My thoughts are with his two sons and his close family today."
Olsson - known to friends as 'Mange' - was born on 4 January 1949 and grew up near Stockholm. He began sailing on Lake Mälaren aged eight and learned his trade in OK Dinghy, Trapez and 505s, winning three Swedish national titles in the latter.
Before beginning his round-the-world career he also served as crew on Sverige in the 1976 America's Cup.
The Volvo Ocean Race website has further tributes from world sailing luminaries HERE.