The teenager impressed on loan at the Reebok last season.
"Jack's a great player," Holden said. "Training with him on a day-to-day basis you get to see what a bite he has.
"Everyone at the club rated him highly and we think he's got a bright future with Arsenal and England.
"He's become a friend of mine but on the field, he's an opponent, and you don't want them to have a good game."