Estrada, the Basketball Association of the Philippines president, said yesterday that he came to terms with Pangilinan in a meeting in Hong Kong.
The two will team up to lead the Samahang Basketbol Pilipinas (SBP) with Estrada serving as chairman and Pangilinan the president.
Estrada, who earlier batted for the presidency, is giving way to Pangilinan "for the greater good of Philippine basketball."
"If I insist to become the president, Manny (Pangilinan) will not agree and we’ll not be able to move on. I’m looking forward for the country’s return to international play," said Estrada.
The formation of SBP would later lead to the dissolution of BAP and Pilipinas Basketball as agreed upon by basketball leaders in a Tokyo meeting early this year.
"I have to abide by the Tokyo accord reached by Pilipinas Basketball leaders and my predecessor (Joey Lina) at BAP," said Estrada.
Asked if BAP officials were aware of his agreement with Pangilinan, Estrada said: "I had no choice but to abide (by the Tokyo agreement). Even if they (BAP people) don’t want to, as president, I had to make the move for the greater good of Philippine basketball."
Estrada will meet with BAP members in the next few days while Pangilinan will soon work for SBP’s recognition as the National association for basketball by the Philippine Olympic Committee.
Estrada said BAP officials would not be left out as they would be well-represented in various committees of the SBP.
For one, BAP deputy secretary general Lito Alvarez has been recommended to be SBP’s treasurer.
PBA chairman Ricky Vargas will be tapped to be the SBP vice chair while PLDT official Al Panlilio would be considered for the executive director’s post.
Estrada said they intend to immediately write the International Basketball Federation (FIBA), informing them of this development.
"I hope the POC recognizes SBP so the FIBA could lift its suspension of the Philippines in international play," said Estrada.
Meanwhile, PBA commissioner Noli Eala lauded the agreement made by the two officials. "We’re grateful for the statesmanship shown by Sen. Jinggoy Estrada and Mr. Manny Pangilinan. I’m confident with everybody pulling in one direction, the Philippine basketball could regain its old glory," said Eala .
PBL commissioner Chino Trinidad said the cage leaders should immediately start rebuilding the structure of Philippine basketball now that they have finally joined hands.
"Now that they have an agreement, they should now discuss how to defend our last crown which is the Southeast Asian Games. It’s a welcome development though late in coming, the country having missed the Asian Games," said Trinidad.