Holtby, on-loan from Tottenham, was dropped to the bench for defeat to Chelsea last weekend.
Magath said: "He has reacted (to being left on the bench) very well. He was one of the most eager players in the last days in training.
"Everything is fine. We are not in a normal situation. I can only repeat that now is not the time to play very well, now is the time to fight. Holtby is not a fighter.
"He is a very smart, skilful, offensive player with very good passes. The game against Chelsea, the best team in the league, we have not much space to create chances and therefore he was out for that game. Saturday is another game."
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