The extraction of K0 elementary amplitude from kaon photoproduction on the deuteron has been done in order to demonstate the possibility of studying the elementary process in the neutron channels. The separation of the elementary amplitude from the deuteron wave function is shown to be possible only in the quasi-free scattering region where the rescattering effects are negligible. The comparison between the extracted and the free-process amplitude in this region shows a good agreement especially at higher photon energies. The cross sections in this region are also found to be relatively large, suggesting that this region is suitable for measurements.