Deng says on his website Wednesday that "significant liability issues" have been overcome to allow him to play in the tournament. The championships run from Aug. 31-Sept. 18 in Lithuania.
He says "playing for GB is always important to me so I'm really glad we could resolve this. It has been a long process but a great team effort."
British Basketball performance director Chris Spice says "we are excited to have him on the court again this year."
Britain has been granted a place in the 2012 Olympics as the host nation.