The young striker faces stiff competition in the Spurs pecking order, with Roberto Soldado, Jermain Defoe and Emmanuel Adebayor also vying for starting roles in the first team.
Kane scored a hat-trick for England's Under-21s in a 4-0 win over San Marino earlier this month - and has spent previous loan spells with Leyton Orient, Millwall, Norwich and Leicester.
The 20-year-old did not get as much game-time as Villas-Boas would have liked, however, so the Spurs boss admits he is taking his time assessing the next step in Kane's footballing development.
"At the moment what I've been speaking to Harry about is that we are studying the possibility of him going out on loan as well - but we are happy for him to try to compete for his place, and so is he," Villas-Boas is quoted as saying in the Tottenham & Wood Green Journal.
"We have lots of options up front and he understands that, but he is happy to continue to push for his place. He has been given that opportunity because he has been excellent in training, so we believe a lot in his future.
"We can't have a loan situation that does not work for him, like the ones that we have had before. That's why we have been very cautious with his next step, and we have not been in a rush in that situation.
"Why haven't the loans worked before? Because he didn't play."
Kane has made just one start for Spurs so far this season - against Aston Villa in the Capital One Cup - as well as three substitute appearances.