The 27-year-old German midfielder joined Forest in the summer of 2014 following his release by Bundesliga outfit Hamburg.
Having played a certain number of games, Tesche has earned a one-year extension to his contract, which means that he will play for the Reds next season.
“I think the option (to extend the contract) was triggered when he played so many games,” Freedman told BBC Radio Nottingham. “He is here next season.”
Freedman’s revelation about Tesche poses a key question. Does the manager want the midfielder in his squad next season?
Tesche was a regular under Stuart Pearce at the start of the season, but he found playing time hard to come by when Freedman replaced the Englishman in February.
The former Arminia Bielefeld man joined Birmingham City on loan from Forest in March until the end of the season.
Tesche was a regular at Birmingham, scoring two goals and creating 16 chances in 12 Championship appearances.
The German had a pass accuracy of 77% and a shot accuracy of 60% during his time at St. Andrew’s Stadium.
For Forest, Tesche made 22 appearances in the Championship, scoring two goals and created 19 chances in the process.
The former Hamburg man had a pass accuracy of 79% and a shot accuracy of 34% during his time at the City Ground.