The Britain's Got Talent judge said that Hough is the perfect "companion" for Cole but nothing more.
She told the News of the World: "I knew all along that Cheryl and Derek were just friends, not lovers.
"I saw them together and he is very gentlemanly. He is the perfect escort and companion for her but that is it."
Holden added that Cole is independent and doesn't need to be in a relationship.
"I absolutely think that people should stop assuming that Cheryl needs a man to get on with her life," she said.
"She is a strong and feisty girl and she fine on her own."
