The boss revealed this afternoon that he had already told the German midfielder that his future lies away from the Lane.
Glenn stated: "I've spoken to Steffen and explained that we won't be offering him a new contract at the end of the season.
"I thought telling him was the right thing to do. He's done a very good job for us so I thought it was only fair to mention it to him now.
"The fact we've said this doesn't change his availability this season. I've got the utmost respect for Steffen, he's a terrific lad, I think he's improved as a player and he's enjoying his football.
"You can never say never in football, things could change, but at this moment in time I thought it was the honest thing to do because we've made that decision."
The former German international, Euro 96 winner and Champions League winner with Borussia Dortmund arrived at the Lane in January 1999.
Glenn Hoddle has announced that the club will not be offering Steffen Freund a new contract.