Rotherham boss Steve Evans believes the signing of Tom Thorpe is a real coup.
Holman joined Villa on a free transfer from AZ Alkmaar 12 months ago in a deal that had been arranged by former manager Alex McLeish.
Paul Lambert subsequently replaced McLeish as Villa boss and he included Holman regularly in his plans last season.
The 29-year-old made 27 appearances in the Premier League and scored his only league goal in a 1-1 draw with Queens Park Rangers last December.
However, with Lambert having already agreed five new signings for next season, reports suggested Holman would be one of the players allowed to leave to make room for the arrivals.
His contract has now been terminated and Villa's decision has freed up Holman to complete a move to the Middle East.