Mr Rincon's lawyer, Victor Orobio, said the judge's decision would only benefit the former footballer, but not others wanted in the same case.
"He can now travel anywhere he wants," said Mr Orobio.
Mr Rincon was wanted in Panama on money laundering and drugs-related criminal conspiracy charges.
He always denied any wrongdoing.
Mr Rincon is famous for scoring a goal for Colombia against Germany in the 1990 World Cup.
He played for the Italian club Napoli, Real Madrid in Spain, and Palmeiras and Corinthians in Brazil.
A judge in Panama has lifted an international arrest warrant against the former Colombian footballer Freddy Rincon.