Holden has been acting as assistant coach with the Turkish club after leaving Al-Ettifaq as Steven Gerrard's No2 last season.
After Adana's relegation, Holden was offered the manager's job, but declined.
"I felt that I could probably accelerate my learning far quicker coming here than going back to England," said Holden about his experience in Turkey, where he has been living at the club's training ground.
"I wanted to put myself in the most challenging environment I could. Can it work in another language? Can I have an impact? You are working through a translator, so you have to be really concise and clear. It is all about finding a connection with a player."
Holden has previously managed at Oldham Athletic, Bristol City, Stoke and Charlton Athletic.