Holland's option for 2018 vested when he met contract incentives of appearing in at least 50 games and/or finishing at least 30 games. MLB.com reported Sunday that the Rockies are expected to try to re-sign Holland.
The team made him a qualifying offer on Monday. He has until 5 p.m. ET Nov. 16 to decide on the offer. If he accepts, he will make $17.4 million in 2018.
After missing the entire 2016 season while recovering from elbow surgery, Holland tied for the National League lead with 41 saves this year and led the majors with 58 games finished. He went 3-6 with a 3.61 ERA in 61 appearances.
Holland was at his best before the All-Star break, when he converted 28 of 29 save chances and had a 1.62 ERA. He struggled in the second half, going 13-of-16 in save opportunities with a 6.38 ERA.
Holland, who turns 32 on Nov. 20, has 186 career saves in seven seasons with the Rockies and Kansas City Royals.
In addition, Colorado declined a $2.5 million club option on utility infielder Alexi Amarista, who gets a $150,000 buyout.
Other Rockies free agents include right-hander Tyler Chatwood, outfielder Carlos Gonzalez, catchers Jonathan Lucroy and Ryan Hanigan, left-hander Jake McGee, right-hander Pat Neshek and first baseman Mark Reynolds.
The Associated Press contributed to this report.