The Bulgaria international, 33, has made 85 appearances and scored 12 goals since joining Bolton from Manchester City in the summer of 2010, but Freedman told Radio Manchester he would be leaving the club.
"We've got to face the facts. Martin is in the latter years of his career and earns a lot of money at this club," he said.
"He's over there now, talking to them. He wants to play in Spain and extend his playing career by a couple of years, so we wish him all the best.
"I feel the best thing for the club is to bring in some new, young blood. I won't be rushed into buying players that I don't feel are right for us in the situation that we find ourselves in at the moment.
"That's where we are and I hope everybody understands that decision."
"We've not got lots of money to spend, in terms of going out there and buying who we want to. I don't want to put this great club in any sort of financial difficulty. I want to make sure we do it correctly.
"There are one or two things that might happen this week, but I won't be rushed into buying players that I don't feel are right for us in the situation that we find ourselves in at the moment."