Coventry City, Millwall and Leeds United have all been touted as possible loan venues for the 18 year old.
Speaking to Bolton's official website, manager Owen Coyle said: "I have tremendous belief in Danny but it's fair to say that he needs to go and get some Championship experience.
"He can now go out on an emergency loan, which covers the next three months, and I know that when he comes back then I will get a far better player.
"There have been numerous clubs throughout the Championship that have been after him, so it is likely that he will go out on loan in the next week or so."