Papic is currently back home in Serbia, where he is set to undergo "complicated surgery" after falling ill while on duty two weeks ago.
Eagles have since brought in Freese, who had been head of youth development at Highlands Park since being replaced as first team head coach by Gordon Igesund earlier this season.
"Today we have signed Allen Freese," Club chairman Sbu Mpisane tells this website.
"Our coach [Papic] is undergoing major and complicated surgery, which he might only recover from at the end of May. By that time the league games will be done and dusted."
Mpisane has made it clear, however, that at this stage Papic is still very much a part of the KwaZulu-Natal-based club.
"He still remains our coach and we will assess his condition and take it from there," he adds.
The former Platinum Stars coach, who lead Dikwena to a famous double of the MTN8 and Telkom Knockout cups in 2013, has been backed to continue their fight for promotion to the PSL, while his contract also contains an option to continue should Papic fail to return to the club before next season.
"The technical team and the players have welcomed him [Freese] warmly, and the fight for promotion still stands.
"[His contract has] an option to stay with the team," he concludes.