Paterson, who can play as a winger or as a forward, is currently on a season-long loan deal at Huddersfield Town.
Freedman has revealed that Forest received an offer for the 24-year-old, and he has also explained why the Championship side turned it down.
“In January we had a few reports of players coming and going - different situations,” the Scot told Forest’s official website. “We did have a bid in for Jamie Paterson but we felt it was nowhere near our valuation and we have the right to turn that down."
Paterson joined Forest from Walsall in the summer of 2013 and has a contract until June 2018.
The attacker has scored three goals and created 27 chances in 18 Championship games so far this season.
Paterson has a pass accuracy of 80% and a shot accuracy of 37%, and has won two headers, 13 dribbles and 10 tackles.
Forest are 11th in the Championship table at the moment with 39 points from 29 matches. The Reds are nine points behind Ipswich Town, who are currently sixth and occupy the final playoff spot.