Owner Fawaz al Hasawi has said that the Scot's initial deal runs until the summer when both sides will review the situation.
Al Hasawi commented: "I'm talking on a daily basis with him on the phone. It seems like he's doing a good job and I would like him to stay. I would like to see good results for Forest. This is the most important thing to me."
And, although the length of contract has been in the news, Freedman could have a five-year City Ground deal and still be in danger of being sacked at the end of the current campaign given what has happened over the past couple of years with the Reds and the increasing riches on offer for those clubs who do make it out of the Championship and into the top-flight.
Keeping hopes alive of that for Forest this season will depend on Freedman's good start continuing against his former club Bolton Wanderers at the weekend.
Having made an impressive start to life under Neil Lennon, Wanderers have taken just four points from a possible fifteen.
The former Celtic boss, speaking after the 4-3 defeat against Watford at the weekend, said: "I want my teams to be mentally strong because it’s the way we were as players – myself Johann (Mjallby) and Garry (Parker).
"There are a few that are a bit fragile at the minute."