yamaha 8hp two stroke stuck in gear

Lot's more info required. Did you run it in water?
Is it actually in gear, can you turn the prop?
Has it been run recently, or has it been standing?
Is it just the lever that is stuck or the gearbox?
 
If the gear lever is absolutely solid, ie wont move at all then it is most likely that it has seized although it is surprising if it has done so without first becoming very stiff to operate.

It is unlikely that there is a problem with the gear unit itself. It is hopefully filled correctly and does not contain a load of water.
 
A key point to look at on these engines (I have one) is the connection block (it’s what I call it) on / for the rod gearing / connection between the handle and the gearbox, (hidden at the front of the leg).
This is a little block with a single bolt which pinches / locks the two rods together.
If this has become loose, or slipped from the / it’s correct position it will present issues exactly what you are describing.
 
A key point to look at on these engines (I have one) is the connection block (it’s what I call it) on / for the rod gearing / connection between the handle and the gearbox, (hidden at the front of the leg).
This is a little block with a single bolt which pinches / locks the two rods together.
If this has become loose, or slipped from the / it’s correct position it will present issues exactly what you are describing.

Thats the connector consisting of parts #28 and #29 in the diagram on this page?

If that is OK and the gear lever is absolutely immoveable I'd be looking at the possibility of it being seized in the brackets #19
 
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1986 I think!? (mine)

There are some similar / common components here, but mine is a de-tuned 8 (by Yamaha) of 86 vintage & the block in question (on mine) is half-ish way down the leg & is a one piece with a bolt which passes through, allowing it to be tightened & therefore clamp the rod.
 
I had a similar problem once. It was due to a build up of crystalised salt in the lower shaft area which jammed the gear/neutral/reverse mech.

I stripped mine to clear it but I'd advise you to run the o/b in fresh water to see if you can dissolve the salt build-up first before you set about stripping it.
 
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