"Tiger is a good friend of mine. What's happened to him has been hard to watch over the last three months, right down to when he made his apology. But I am sure he is headed in a better direction now -- the worst has passed," Federer was quoted as saying by The Sun.
"I hope that he can also work things out with his wife Elin because they are very nice people," he added.
Federer revealed that he has not spoken to Woods since the revelations about his private life, but insists that he remains friends with the American.
"I haven't had any contact with him but he has my support. He has been in therapy and I wish him the best," Federer said.
"It's been hard to watch from far away, but I would love to see him back on the golf course," he added.
Woods last week fought back tears as he issued a full and frank apology for cheating on his wife but stopped short of announcing when he will return to golf.
Tiger Woods sets no date for return to competition
Elin set to divorce Tiger Woods: reports
It's golf or me, wife Elin tells Tiger
Indian-American health expert leaves White House
Oracle closes $7.4-bn Sun deal