Spurs have lost only one of their opening six league games and are third in the table, just two points behind pacesetters Arsenal, following Saturday’s 1-1 draw with London rivals Chelsea.
With last season’s top two, Manchesters United and City, both severely off the pace at the moment Andre Villas-Boas’s side look capable of capitalising. But Holtby feels his team must stay grounded.
“Everyone can dream, but our main aim is to get Champions League football,” he said.
“I think we’ve got the quality and the ability in the whole squad to do that, I’m very confident. It’s a long season and everyone has to be at the top level to reach that.”
Former Germany Under-21 captain Holtby has made just four Premier League starts since moving to White Hart Lane from Bundesliga side Schalke for £1.5m in January, and none yet this season.
However, the 23-year-old hopes to get more of a chance to prove his worth this term.
“I didn’t do the best that I can do last season, but I’ve progressed and now I think I’m getting more involved,” added Holtby, who has an English father.
“Roberto Soldado is a fantastic striker. I hope one day I can play behind him and I’m learning Jermain Defoe’s runs too.
“It’s easy for a No10 or a central midfielder to put these players in because they make some wonderful movements. I feel very comfortable and very proud to be here at this club and I just try to do the things that I do best.”