Ozbey today paid the fine of Rs 10,28,982.70 slapped by East Bengal and apologised to his former club after being found guilty of professional misconduct by the Indian Football Association, the Bengal governing body of football.
He is now eligible to sign for rival club Mohun Bagan.
East Bengal secretary Majumdar handed over the token to the Australian after a one-hour meeting at the club tent this evening.
"He is now a free player. He apologised in writing. It's a victory for us. After all this, I'm sure he now realises what's right and wrong," Majumdar told PTI.
In a fine gesture, East Bengal donated the amount paid by Ozbey to IFA for development of nursery football.
Ozbey is likely to register himself as a Mohun Bagan player tomorrow for 2012-13 season.
In a press conference on May 17, Ozbey had accused East Bengal of harassment and claimed that his two-year contract with the red-and-gold brigade was already over.
East Bengal, however, countered to press for the charges and said they had signed a voucher for the next season and claimed that Ozbey was not a free player as the battle refused to die down.
IFA's Players' Status Committee, however, found Ozbey guilty and fined him.