The 26-year-old, who scored in Saturday's 4-1 win over Hull City, will reportedly pen fresh terms on a new four-year contract this week.
"Mark Davies was offered a new contract in the summer before I came to the club. Over the period when I came here, that was still being talked about," Freedman told the Bolton News.
"I think it is still ongoing but I will need to check upstairs where we are with it. I am pretty sure it is nearly agreed with my blessing in terms of him staying a lot longer. Mark Davies is somebody I want to build a team around."
Davies has scored six goals for the club this season.