The 50-year-old has been in post at Selhurst Park since 2017 after previously playing for and managing the Eagles.
Freedman was integral in embedding a sustainable scouting structure at the club, recruiting the likes of Marc Guehi, Adam Wharton, Michael Olise and Eberechi Eze.
While there has been no confirmation of Freedman's next destination, reports suggest he has been offered a role with the Diriyah Company, which owns Saudi second-tier side Al-Diriyah.
Eagles Chairman Steve Parish said: “Dougie has been instrumental in everything we have done over the past eight years and indeed had a huge impact before that as manager and, of course, as a player.
"I have enjoyed working with him immensely and wish him every success for the future. Dougie leaves behind an excellent and well-structured sporting department that I’m sure will continue to go from strength to strength.”
The outgoing Freedman added: "I would like to extend my thanks to Steve Parish, the other owners and to all the staff, managers and players who have been at the club during my time here. I’ve thoroughly enjoyed learning from and working alongside you all.
"It’s been an honour to represent the club and I am incredibly proud of the work that’s been done, with the Chairman’s support, in growing the football club into its current position.
"To be leaving the club with a squad full of exciting talent led by an excellent manager, I truly believe the foundations are in place to be built upon.
“Finally, a huge thank you to all the fans for your continued support and passion - especially with how you’ve helped new signings and Academy products settle into life at Selhurst Park by supporting and getting behind the team.
"Crystal Palace is and will always remain in my heart, and I will continue to look for results and follow the club’s progress closely.
Freedman is expected to continue with Palace on a short-term basis to aid with the club's succession plans, while long-term consultant Iain Moody could see his responsibilities increased.
🚨 My understanding of Iain Moody’s role at Crystal Palace is that he has worked closely with Dougie Freedman in the recruitment department. He has provided consultancy to Freedman and Steve Parish while playing crucial roles in some transfers.
Moody would often be involved in…
— Bobby Manzi (@BobbyManzi) March 17, 2025