Freedman had been working hard to push through a deal for the 21-year- old and only a couple of days ago admitted he was still “very keen” to get Frey into the club.
Now he has moved on to other potential targets after calling a halt to his pursuit of the Swiss frontman.
He said: “We are going to pull the plug on that one – I need players to come in and play and unfortunately with Mickey, he has not played since January and I just feel for where we are right now, I need someone to come in and hit the ground running, so it’s a dead deal.
“Unfortunately with the situation we are in and having a few injuries, we just have to get someone in who can play straight away. There are other options.”
Freedman also revealed he left flying winger Michail Antonio out of the starting line-up against Charlton on Tuesday night for psychological reasons after Forest turned down a reported £4 million offer from Derby.
“We received a bid on Monday which we rejected, that we have a right to do,” Freedman said after seeing his side draw 0-0 with the Addicks.
“Over the last 24 hours, the physios and I spoke to Michail on this matter and we made a decision that he wasn’t in the right frame of mind to play football, so Oliver Burke made his debut in his place and did very well.”
When asked if rumours were true that Antonio wanted to leave, Freedman added: “I am making no further comments on the situation. I only deal in facts.”