Garbajosa leaves Raptors, free for Olympics

Spain's Jorge Garbajosa celebrates after scoring a three-point shot against Israel during their second round game at the European Basketball Championships in Madrid September 11, 2007.

MADRID (Reuters) - Jorge Garbajosa has rescinded his contract with the NBA's Toronto Raptors, freeing him to join up with the Spain squad for the Beijing Olympics.

The Raptors had said they would not allow Garbajosa to go to the Olympics as they were locked in a legal dispute with the Spanish Basketball Federation (FEB) over an earlier injury to the forward.

"We have all signed an agreement -- the club, the federation, the insurance company and me. It was the best for all parties," Garbajosa was quoted as saying in the Spanish media on Wednesday.

"This opens the door for me to be able to play at the Olympic Games."

In March, the Raptors sued the FEB for the non-payment of a $1 million insurance policy taken out on Garbajosa before he helped Spain to the silver medal position at last September's European championship.

Garbajosa, who also won gold with Spain at the 2006 world championship, broke his left ankle during a Raptors game in March last year.

The Raptors believed he was prematurely rushed back into action for the European championship with Spain. He played just seven games on his return last season, before undergoing surgery again on the left leg in December.

"Jorge has completely recovered from his injury and this is the best news for us," FEB President Jose Luis Saez said.

Garbajosa has been included in Aito Garcia Reneses's provisional 15-man squad that start their preparations on July 1.

(Writing by Mark Elkington; Editing by Peter Rutherford)