Lambert believes his talismanic frontman will still be at Carrow Road next season and that the former Shrewsbury striker has found a natural home there.
"It is nothing to do with any fall out or the way he has played whatsoever," Lambert told Sky Sports.
"This club fit Grant and vice-versa - he has been brilliant for this club and that should never be underestimated. The beauty about him was everywhere he went people questioned whether he could do it.
"It was the same in the Championship when we came out of League One, could he do it in the Championship? And he goes and does it there and exactly the same in the Premiership and he has done it."
Lambert also refuted the idea that Holt could have made Hodgson's squad had he been playing for a 'bigger' team.
"If he wasn't at Norwich he might not have made the England squad, he might not have scored 17 goals," he said.
"Roy has got a hard enough job to worry about what other people think, he has got to pick what he feels is the best squad and team for England and people have got to respect that.
"From our point of view Grant has been brilliant for Norwich and vice-versa and if he keeps playing the way he has next year you just don't know (about his England prospects)."