Flintoff reached a settlement with the BBC following his crash, said to be worth £9m.
The payout will come from the commercial arm of the BBC and not from the licence fee.
Freddie has since landed a new role almost a year on from surviving the horror crash.
The England cricket legend has been named head coach of the Northern Superchargers men's Hundred franchise.
Jeremy Clarkson was the face of Top Gear for years but in 2015 he was dropped over what the BBC called an "unprovoked physical and verbal attack" on producer Oisin Tymon.
Richard Hammond and James May would soon follow him, going on to launch rival show The Grand Tour on Amazon Prime Video.
Freddie Flintoff's horror crash was not the first Top Gear host to suffer serious injuries while on the show.
In 2006, Richard Hammond was filming for Top Gear when he crashed a jet-powered dragster called Vampire at nearly 320mph at the former RAF Elvington airbase near York.
This left the presenter in a coma for two weeks and saw him suffer serious head injuries.
Hammond would go on to recover from his injuries.
The BBC paused production on Top Gear after Freddie Flintoff suffered serious injuries in a horror crash last December.
The BBC confirmed at the time that a health and safety review would take place.
Flintoff hosted the show alongside Take Me Out host Paddy McGuinness and automotive journalist Chris Harris.
In a statement given to the PA news agency, the BBC said: "Given the exceptional circumstances, the BBC has decided to rest the UK show for the foreseeable future.
"The BBC remains committed to Freddie, Chris and Paddy who have been at the heart of the show's renaissance since 2019, and we're excited about new projects being developed with each of them.
"We will have more to say in the near future on this. We know resting the show will be disappointing news for fans, but it is the right thing to do."
"All other Top Gear activity remains unaffected by this hiatus including international formats, digital, magazines and licensing."
Top Gear has been axed for the 'foreseeable future', leaving fans across the globe devastated.
This comes after Freddie Flintoff was seriously injured in a horror 124mph crash last December.
In a statement given to the PA news agency, the BBC said: “Given the exceptional circumstances, the BBC has decided to rest the UK show for the foreseeable future.
“The BBC remains committed to Freddie, Chris and Paddy who have been at the heart of the show’s renaissance since 2019, and we’re excited about new projects being developed with each of them."