The 19-year-old striker joined Ipswich on loan from Tottenham in January after spending the first half of the season at Millwall in the Championship.
Parrott has scored just once in 12 League One games for Ipswich, but Holland says that as far as he is aware that the Tractor Boys are mightily impressed with what they have seen of the Spurs striker.
The former Ireland star pointed out that Parrott has not played as a centre-forward at Ipswich this season and it has led to the development of his movement and he is a better all-round player now.
Holland stressed that given the technical ability the young attacker has, he is good enough to play at a higher level.
He said on Off the Ball: “I know Ipswich are very pleased with the way he has done and the progress he has made.
“He is actually played a deeper role like a number 10 really rather than an out and out centre-forward.
“But his all-round game has impressed everybody – his movement and positions he gets into.
“Troy has the ability to play at a higher level and technically he is a very good player.
“People at Ipswich has been impressed with his development and hopefully, he is a player who will come good for us.”
Parrott has a contract until 2023 with Tottenham and it remains to be seen what plans the club have for him once he returns in the summer.
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