The former Falkirk boss could be in the dugout for Saturday’s game with St Mirren, with the West Lothian club hoping to tie up a deal by the close of play on Friday.
Miller was appointed in June but left after just seven weeks after disagreeing with the club’s request that he hang up his boots to focus on management duties.
Holt was on the four-person shortlist for the Lions job before Miller was appointed, and led the Bairns to the play-offs at the end of the 2013/14 season before leaving for Carrow Road.
The 45-year-old, who also spent time coaching with Norwich City’s academy, spent most of his playing career with Kilmarnock and the Canaries, as well as stints with Nottingham Forest and Wycombe.
The 10-cap Scotland international said he was “excited” by the opportunity and challenge, adding that he was looking forward to working with the players and backroom staff.
Ex-Arsenal captain Tony Adams had expressed an interest in the role while David Hopkin was also linked with a sensational return to the Tony Macaroni Arena.