The 28-year-old joined the promoted Seasiders in August on loan from Derby County and the 28-year-old has proved a big hit at Bloomfield Road.
Varney bagged his fourth Premier League goal of the season in Saturday's 2-1 win over Wolves with a stunning strike just minutes after kick-off.
Holloway has confirmed the club have already brokered a deal with Derby and that they will complete his signing on the cheap even if there is competition for his signature.
"We are going to sign him in January," said Holloway. "We have a massive clause in there.
"He can't go anywhere else and we get him for £250,000.
"They can't change that, there's nothing they can do about it. Unlucky."
Varney would need to take a pay cut to join Blackpool permanently, but he has hinted he would be willing to do so to join the club on a full-time basis.
"I would be delighted if something could be done because I've never enjoyed my football so much," he said. "The togetherness here is nothing like I have ever seen before.
"Hopefully something can be sorted out in January or if not then at the end of the season. You can't not slot in here because the gaffer gives you so much space to express yourself."
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