The 34-year-old striker is currently on loan at Leeds where he has been in sparkling form.
His four goals in nine games have convinced him it is too soon to hang up his boots for a coaching role.
The Scot has another year to run on his Palace contract and wants to spend that time purely as a player.
"Much as I would love to coach at Palace the timing is just wrong," Freedman told the South London Press.
"My time at Leeds has told me I will definitely be carrying on playing and hopefully that will be at Palace.
"I literally pick up my boots and shinpads at Leeds and go out and score a few goals which has been really nice - it takes me back to my younger days - and I've been getting a few pats on the back.
"If I go back to Palace I will be going back as a player.
"The coaching has come one or two years too soon - and that's been proved by the fact I'm doing well for another club. I thought before I joined Leeds that I might still have something to offer.
"If Neil Warnock decides I won't be playing and doesn't want me that is when I will have a decision to make."