Much has been made of the possibility of Holtby, a Schalke winger who is currently on loan with Bundesliga leaders Mainz, being eligible to play for England through his father.
However, an insider told ESPNsoccernet: "Lewis Holtby is an interesting proposition but this is only the first season he has come to prominence.
"It is quite clear that Engalnd could call him up, but is that the right thing to do? Is it the right thing to do, just to call him up to preserve him for England and make sure he cannot play for Germany?
"There is no guarantee that even if he were called up by England that he would play for England. We have Jack Wilshere and we want to encourage him - he is a great prospect - and calling up another young midfield player doesn't send out the right signal that we have faith in him, and we do."
Germany boss Joachim Low has indicated that he plans to include Holtby in his senior squad before long.
"Players such as Andre Schurrle or Lewis Holtby of Mainz have edged very close to the Germany squad," he told Bild. "I think it is better for them to play in the Under-21s this month. They need match action rather than sitting on the bench with us.
"Anyway, all of them are going to get their opportunity with us this year. The friendly against Sweden (in November) is a match I am going to use for testing."