The Mirror says Holloway wants to buy loan star striker Varney in a hurry and tie up a deal with parent club Derby County before the player goes on the open market.
Striker Varney has been a hit for the Seasiders since his pre-season move, banging in five goals to help the Tangerines sweep into the top half of the table against all expectations.
Holloway is keen to make the deal permanent before an escape 'loophole' opens up in January freeing Derby to sell Varney to any other bidder - with the likes of Wolves, West Brom and Fulham watching his progress.
Blackpool have the option to sign the player for £500,000 next summer - an arrangement they struck in case this season went wrong and they did not want to keep him.
However, Varney has been a success and Holloway plans to bring the full-time move forward and hammer out a fee with the Rams and a deal with the player.