Everton are happy to move Holgate on this summer and have been looking to shift him off the books on a permanent deal.
Sean Dyche’s side are also prepared to entertain loan offers however and Southampton want a temporary agreement.
There is a gap though between the portion of Holgate’s wage that Southampton are willing to pay and how much Everton would like them to contribute.
The two will have to come to an agreement over Holgate’s salary for the switch to happen.
There are also other sides keen on the Everton defender.
Holgate made just eight Premier League appearances for Everton over the course of last season, with the defender firmly out of favour for most of the campaign.
The majority of the defender’s football has been played in the Premier League, though he does have experience of the Championship, gained during a loan spell at West Brom.