According to a report by Fox Sports, formal negotiations between Holland and the Reds have taken place, while a number of other A-League teams and clubs in the Middle East, the MLS and in Europe have also expressed an interest.
Holland was released by German club MSV Duisburg, after they were relegated to the 3. Liga, the third-tier of German football at the end of last season.
Bringing in the midfielder would be a huge boost for the Reds after they lost a number of key players during the off-season, including Craig Goodwin and Stefan Mauk.
Holland's potential return to the A-League would bring him back to Australia for the first time since 2009 after he left the Newcastle Jets for AZ Alkmaar in the Eredivisie.
The 27 year-old, who has 15 caps for Australia, hopes that regular playing time will put him back into Socceroos contention, having not appeared in the green and gold since his selection in the 2014 World Cup squad.
Adelaide have also lined up a loan-move for La Liga striker Sergi Guardiola in the hopes he can take on some of the goal scoring load after their all-time highest scorer Bruce Djite sealed a move to Suwon FC in the Korean K League.
