The 30-year-old, who joined the former Premier League club on loan from Leicester in September, has impressed since arriving at the Reebok.
Freedman told the Bolton News: "If you want to play football, let's play football, if you want to battle, let's battle. I think that's what Dannsy is all about and you need characters like him in the team.
"There is room for a player like him at this club because he gets you off your seat and makes things happen."
As it stands, Danns will return to his parent club at the end of December.