Reports last night emerged of Freedman being in advanced talks with the Diriyah Company, which own Saudi Second Division club, Al-Diriyah.
This morning, Palace confirmed the news of the Scot's resignation.
Chairman Steve Parish said: “Dougie has been instrumental in everything we have done over the past eight years and indeed had a huge impact before that as manager and, of course, as a player. I have enjoyed working with him immensely and wish him every success for the future. Dougie leaves behind an excellent and well-structured sporting department that I’m sure will continue to go from strength to strength.”
Freedman said: "I would like to extend my thanks to Steve Parish, the other owners and to all the staff, managers and players who have been at the club during my time here. I’ve thoroughly enjoyed learning from and working alongside you all.
"It’s been an honour to represent the club and I am incredibly proud of the work that’s been done, with the Chairman’s support, in growing the football club into its current position.
"To be leaving the club with a squad full of exciting talent led by an excellent manager, I truly believe the foundations are in place to be built upon.
“Finally, a huge thank you to all the fans for your continued support and passion - especially with how you’ve helped new signings and Academy products settle into life at Selhurst Park by supporting and getting behind the team.
"Crystal Palace is and will always remain in my heart, and I will continue to look for results and follow the club’s progress closely.”