Holtby joined Spurs from Schalke last January and has gone on to make 18 starts, while also featuring 20 times from the bench.
He has made one start and one appearance as a substitute under new manager Sherwood following the departure of previous boss Andre Villas-Boas.
While he would never rule out a move back to the Bundesliga, the 23-year-old, who is under contract with Spurs until June 2018, wants to stay and force his way into the side on a more regular basis.
In comments reported by BILD am Sonntag, Holtby is quoted as saying: "I would never rule out a move back to the Bundesliga.
"I was having a great time at Schalke, even if things looked different in that final phase of my stay there.
"In football things can happen very fast. At this point in time it's a real up and down for me in sporting affairs.
"There is a big competition for a first-team spot and, although I have had rather rare appearances, I have gained nine assists and three goals thus far this term. This is a good quota!
"I definitely want to be more involved in the starting XI!"