The 36-year-old, who oversaw a 1-0 league win over Preston and a 2-1 defeat to Coventry in the FA Cup as caretaker manager, was handed a two-and-a-half year contract on Tuesday night after the club missed out on number one target Eddie Howe.
And Freedman told the club's official website: "This is a very proud moment for me to be named manager of the club that I have grown to love.
"I would like to thank the owners of the club for giving me this opportunity and I am looking forward to the challenge ahead.
"I will now look at both the playing squad and my own staff which hopefully we will add to sooner rather than later."
Freedman replaces George Burley who was sacked on New Year`s Day. The Eagles are currently third from bottom in the npower Championship, one point from safety.