The determination of optimum nitrogen (N) fertilisation rates, which maximise yields and minimise N losses, remains problematic due to unknown upcoming crop requirements and near-future supply by the soil. Remote sensing can be used for determining the crop N status and to assess the spatial variability within a field or between fields. This can be used to improve N fertilisation, provided that the optimal fertilisation rate at the time of fertiliser application for an expected yield is known. Using the APSIM-wheat model, we developed an algorithm that relates the N status of the plants at early development stages to the yield response to N. Simulations were performed for winter wheat under growth conditions in Denmark. To obtain a range of different N status in the biomass at early growth stages, the soil N in autumn was varied from 20 to 180 kg N ha−1, and at BBCH23, fertiliser was applied at a rate of 50 kg N ha−1. In a full factorial setup, additional N fertiliser was applied ranging from 0 to 150 kg N ha−1 during three different development stages (BBCH30, 32, and 37). The algorithm was evaluated by comparing model outputs with a standard N application of 50 kg N ha−1 at BBCH23 and 150 kg N ha−1 at BBCH30. The evaluation showed that, depending on the N status of the soil, the algorithm either provided higher or lower optimal N fertilisation rates when targeting 95% of the maximum yield, and these affected the grain yield and the grain N, as well as the amount of N leaching. Split application of fertiliser into three applications was generally beneficial, with decreased product-related N leaching of up to nearly 30%. Further testing of the model under different environmental conditions is needed before such an algorithm can be used to guide N fertilisation.