Howard is reportedly a target for Sheffield Wednesday and his old club Derby, who are both looking to bolster their attacking options.
And Eriksson will not oppose the switch if a favourable deal can be found for both parties.
"There is a possibility that Steve could go out on loan though and there are talks going on between us and the club, the agent and the player," he told the Leicester Mercury.
"He is match fit and he did a very good pre-season, but he wants to play. He is a big boy and one of those who needs to play regularly to keep his fitness.
"If it is going to happen, then I understand the reason why, but if it is going to happen I don't know."