The confederation and the club had been in talks for several months before finally reaching a deal, and Sky Sports' Spanish football expert Balague believes the move is good PR for the Brazilian forward at present.
"The reaction in Barcelona is that most people believed Neymar was not going to rest enough. We've seen Neymar take some trips to Brazil, not just to do with football, and there's a lot of negative publicity in the direction of Neymar, so this is a good PR for himself in the eyes of the fans.
The Olympics will be played from August 3-21, while the Copa America runs from June 3-26
"I think most fans understand he needs to rest, as rest is as important for an athlete than preparation.
"In contrast, in Brazil there are more and more voices saying he is not a mature leader and is not pulling all of his weight when it comes to the national side.
"It's not a Brazilian decision, Brazil want him playing everything, it's more the decision of Barcelona. Neymar of course wanted to play everything, but Barcelona made him realise he had to make a choice.
Pep Guardiola and Barcelona won the right to restrict Lionel Messi from going to the Olympics in 2008, but let him go anyway
"It is a different kind of summer with Olympics and Copa America - I think Barcelona have used the timing cleverly, it's a good moment to confirm publicly what they have been defending for months."
Clubs are not obliged by FIFA to release players for the Olympics, but had to do so for the Copa America Centenario in the United States, but a deal has been struck to ensure Neymar is exempt.
Neymar has come under criticism from fans and the media of late as Barcelona slumped to just one point from a possible 12 and were knocked out of the Champions League by Atletico Madrid.
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