Holden has made just three Premier League appearances since his arrival to Wanderers in January but Coyle has been impressed with the contribution of the USA international.
The deal will keep the former Houston Dynamo man at the Reebok until the end of the 2011/12 campaign should he accept the terms.
Holden is currently on duty with Bob Bradley's team preparing for the World Cup finals in South Africa and no deal is expected to be signed until after the tournament.
Coyle told the Bolton News: "He came to the club with the option of another year. Like everyone, I have been really impressed with Stuart on and off the pitch since he came here.
"The players really like him, and he's been terrific in each game he has played in for me. We had a meeting with his representative last week, and needless to say, I'd love him to be a part of this football club for a long time to come."
Holden made his first start since breaking his leg in March in the States' 4-2 friendly loss at the hands of the Czech Republic in the early hours of Wednesday morning.
The 24-year-old was able to feature in the Trotters' final game of the season before turning his attentions to international duty, coming on as a substitute in the 2-1 win over Birmingham.
And Coyle believes the way his player bounced back from the setback spoke volumes about his character, and displayed why he had been offered a new deal.
Bradley is preparing his final 23-man party for the June tournament and with Holden expected to be on the plane, Coyle backed his player to make an impact in Group C against opponents England, Algeria and Slovakia.
"You saw what the fans thought of him when I brought him on against Birmingham with half an hour to go," added Coyle.
"I thought Stuart was excellent in those early games, and bounced back so well after getting the injury. It tells you a lot about him.
"I just hope he can crack on now and have a good World Cup with the US, because I'm really looking forward to having him back with us next season."
Source: Team Talk
Source: Team Talk