She is currently deputy editor at sister paper The Sunday Telegraph's own magazine but is expected to move across to the Saturday role early next month, when she will report to editor Michelle Lavery.
Holliday's job, in turn, will be taken by Ross Jones, associate editor of The Independent on Sunday's Review supplement, who arrives on 9 September.
Jones has also worked at men's magazine Arena and as features editor of Red.
Holliday is the replacement for Will Ellsworth-Jones, who is leaving this month to go freelance after 11 years at the Telegraph Group, seven of which were on the Saturday magazine (PRWeek, 21 June).
Holliday is a seasoned operator in the world of broadsheet newspapers' magazine spin-offs. Before her three-year stint in her current role, she was features editor of the same title.
Prior to joining The Telegraph, she was at The Observer's Life magazine.
Before that she worked on The Independent's Saturday magazine.
She said she was 'terribly excited' by the new role. In a brief statement, Lavery said Holliday's experience on the Telegraph stablemate would be invaluable in her new position.
Both magazines cover similar ground, namely: lifestyle, interviews, arts, homes and gardens.
Lucy Tuck, editor of The Sunday Telegraph Magazine and Holliday's current boss, was not available for comment.
Lavery replaced Emma Soames as editor of The Daily Telegraph Magazine earlier this year. Lavery was formerly deputy editor of New York's Harper's Bazaar.
Her appointment was seen as a coup for The Telegraph when it was announced in January, since Lavery was one of those charged with revitalising the fortunes of the US style title.
Soames left to edit senior citizens' lifestyle title Saga Magazine.