"Peter is a big, solid centerman with good NHL experience," Coyotes general manager John Chayka said. "We look forward to having him join our team."
Holland was selected by the Anaheim Ducks with the No. 15 pick in the 2009 NHL Draft. He has 70 points (30 goals, 40 assists) in 203 NHL games in parts of six seasons with the Ducks and Maple Leafs.
Holland is likely to join the Coyotes for their game Monday at the Pittsburgh Penguins.
Chayka said Toronto would receive a sixth-round pick if the Coyotes sign or trade Holland, who will become a restricted free agent on July 1.