"I spoke to the Federation and they have accepted it," the 32-year-old multiple grand slam winner told Reuters soon after winning the Mumbai Open doubles crown with Croatian Mario Ancic.
"I will not be playing for India but I will continue playing on the Tour and grand slams."
Bhupathi had been expected to partner Davis Cup captain Leander Paes at the Asian Games in Doha in December and defend the doubles crown.
He felt slighted when the Federation paired top woman player Sania Mirza with Leander Paes for the Asian Games.
Bhupathi was paired with the lower-ranked Shikha Oberoi.
"Various factors led to it, things were adding up," said Bhupathi, who has won 10 grand slam doubles and mixed doubles crowns.
"I needed to cut down on my playing and prioritise on the men's doubles at the Australian Open, one title that I have not won."
"Two weeks at Doha is not the ideal preparation for the Australian Open," added Bhupathi, who has won four men's doubles grand slams.