The 26-year-old - who cemented himself as a Toffees regular under former manager Carlo Ancelotti - struggled massively for minutes in the Premier League last term, appearing in just eight matches.
Sean Dyche's men avoided relegation to the Championship by only two points in the end, finishing in 17th place, representing their worst league placement since the 2003-04 season under David Moyes.
Having made the switch to Merseyside from Barnsley in the summer of 2015, the former England Under-21s international has made over 150 appearances for Everton, scoring on five occasions.
Holgate could be handed a chance of impress in the Premier League in the 2023-24 campaign - according to Football Insider - with top-flight newcomers Sheffield United interested in signing the centre-back on loan.
The report also claims that Championship duo Leeds and Southampton have enquired about the availability of the Englishman on a temporary basis, as both the Whites and the Saints look to bounce back immediately following relegation last campaign.
With two years left on his current terms at Goodison Park, it is understood that former Burnley boss Dyche has informed Holgate that he is free to leave the club on loan for the season.
A potential stumbling block in any move for defender is his personal terms, with the 26-year-old's wages set to increase to £72,000 per week this summer due to stipulations placed in his five-year deal back in 2020.
It is currently unclear how much parent club Everton would pay towards Holgate's salary during a loan spell away this season, although Paul Heckingbottom's men are still keen on the player.
The Blades are back in the Premier League after finishing second behind Burnley in the Championship last season, with the top-flight newcomers opting to recruit young talent from around Europe so far in the transfer window.
Benie Traore, Yasser Larouci and Anis Ben Slimane have joined from Hacken, Troyes and Brondby respectively, however it is now believed that Heckingbottom wishes to bolster his squad with some English top-flight experience.
Holgate would certainly fit the bill in that regard, with the centre-back appearing in 80 Premier League matches across three seasons between 2019 and 2022.
Recently-relegated Leeds are looking at bringing Holgate to Elland Road, as Daniel Farke hopes to mould his squad into one which is hard to beat, after the Whites conceded 78 times in 38 league matches last season.
Southampton have been in the transfer spotlight more than most this summer due to speculation surrounding the potential departures of James Ward-Prowse and Romeo Lavia, however there is still a real expectation on the South Coast that the Saints should be good enough to challenge for automatic promotion.