"The plan is to play in Toronto because that's what suits us," Toni Nadal, who is also Nadal's uncle, told a press conference in Mallorca, adding the 14-time Grand Slam title winner could start training on court again in two weeks.
"It's following the normal recovery schedule and now he has to strengthen the wrist and the arm again," said Toni Nadal.
"(Nadal) will arrive in form in Rio. It will give him time to prepare."
He pulled out of the French Open, where he has been champion on nine occasions, after injuring a tendon in his left wrist after just two rounds. Nadal, the world number five, is keen to play at the Rio Olympics after being unable to defend his gold medal at the 2012 London Games because of a knee injury.
He had been scheduled to be Spain's flag-bearer at the opening ceremony. The Spanish federation announced earlier Thursday that Nadal and Garbine Muguruza will lead Spain's charge for Olympic tennis glory and could play together in the mixed doubles.