Augsburg coach Markus Weinzierl was pleased with the deal and the player said that he hopes to continue improving while at the club.
"Raphael Holzhauser is a talented young player, who made 23 Bundesliga appearances for Stuttgart last season," Bundesliga.com quotes Weinzierl as saying. "We really hope that he'll continue to develop here and that we can help each other to reach our goals.
"I'm really pleased the loan's gone through," Holzhauser said. "It's the right step for my development, I've followed Augsburg for a few years. They particularly impressed me during the second half of last season."
Holzhauser has played 24 times for Austria Under-21s.