SAFA will hold talks with the national broadcaster next month - with Sedibe pushing for an improved deal on their current one, which expires in April.
"We know exactly what we want and we have already finalised our broadcast strategy," Sedibe told Business Day.
"Obviously we want to continue working with the SABC but not under these difficult conditions.
"We cannot continue like this because the current contract is ludicrous," he said.
In 2007, the Premier Soccer League dumped the SABC for SuperSport International in a broadcasting deal worth R1.6bn over five years.
And Sedibe says SAFA are looking for similar terms.
"If we are unable to reach a deal, then we will have to take our business elsewhere," Sedibe said.
"The new deal that we will propose to the SABC will not be very different from the one that the PSL has with SuperSport International."
SABC spokesperson Kaizer Kganyago said he was disappointed with SAFA's position.
"They are already talking about alternatives before we have even started discussions," he said.
"Then you have a problem. The fact is we do not know what they are thinking and they certainly do not know what we are thinking around this whole issue.
"Let them come to the table and then we can reach common ground. We do not want to say anything that will pre-empt what the discussions are going to be and how they are going to play out before they take place," Kganyago said.
The current contract, which was signed in April 2005, does not generate any direct revenue for SAFA who are also expected to contribute to the costs of broadcasting a match.