GAZA, Sept 20 (Reuters) - Middle East peace envoy Tony Blair's sister-in-law, who had been stranded in the Gaza Strip since sailing there in defiance of an Israeli-led blockade, was allowed to leave via Egypt on Saturday, a border official said.

The official, a Palestinian, said Lauren Booth and two other foreign "Free Gaza" activists passed through Rafah crossing into Egypt. He quoted an Egyptian counterpart on the other side of the terminal as confirming the three had been allowed through.

Booth, sister of the former British prime minister's wife Cherie, was one of 44 activists who set sail from Cyprus, docking in Gaza on Aug. 23 after Israel decided not to intercept their boat as it passed a naval cordon on the coastal territory.

She was among nine activists who remained when the others sailed back. Earlier this month, Booth complained of being refused exit permits by Israel and Egypt, which border Gaza.

Israel stepped up an embargo on the strip after Islamist Hamas, which opposes Palestinian peacemaking with the Jewish state, seized control. The measure has been condemned abroad as collective punishment against Gaza's 1.5 million residents.

Israel eased some restrictions after an Egyptian-brokered truce in June that largely stopped rocket attacks from Gaza into Israel. But Gaza's land crossings have remained largely shut. (Reporting by Nidal al-Mughrabi; Writing by Dan Williams; editing by Matthew Jones)

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