"I think it's better that we have someone elected, who will be accountable and then, obviously, they can decide whether they want to run again in a year's time," Ford told Newstalk 1010 listeners on Sunday.
"But in a year a lot of stuff happens, a year is a lifetime in politics."
Councillors are set to decide the byelection-versus-appointment issue during a special meeting on Monday morning.
Ford has long said that he favours seeing a byelection held to decide Holyday’s replacement.
Holyday recently won a seat in the provincial legislature. He now represents the riding of Etobicoke-Lakeshore as a Progressive Conservative MPP.
His departure from council left open the seat for Ward 3 Etobicoke Centre and spurred the appointment of Coun. Norm Kelly as the new deputy mayor.
Holyday had previously been serving as Ford's deputy mayor. Ford recently awarded him the key to the city.