The German arrived at White Hart Lane from Schalke last season as part of a deal worth £1.5 million.
After making an immediate impact at Tottenham he was shipped out on loan to Fulham in January.
Although the 23-year-old has previously insisted that he intends to head back to White Hart Lane at the end of the season, he may be tempted by the offer of more regular football at Villa Park.
According to the Star, Paul Lambert, who spent some of his playing career in Germany, has singled out Holtby as one of his transfer priorities this summer, along with Manchester United striker Javier Hernandez and Manchester City defender Joleon Lescott.
The paper adds that owner Randy Lerner is willing to splash the cash this summer in order to revive Villa's fortunes after another season spent flirting with relegation under Lambert.
Tottenham are likely to undergo something of an overhaul this summer too, with boss Tim Sherwood likely to be shown the door.
Reports have claimed that Ajax boss Frank de Boer is the favourite to replace the former Spurs midfielder.
Tottenham currently sit in 6th place in the Premier League with two games of the season remaining, with their hopes of qualifying for the Champions League long gone.
The two clubs meet on the last day of the season.