The English FA found no evidence that Manchester City made an illegal payment to an agent when they signed Jadon Sancho back in March 2015.
A previous report had suggested that City paid agent Emeka Obasi £200,000 to help facilitate the deal to sign Sancho from Watford, despite it being against the rules for players under the age of 16 to be represented by an agent.
The Times reports that the FA conducted a nine-month investigation into the allegations, but could not find any evidence to substantiate the claims of City's illegal payment.
There is not expected to be any further action against City, whom Sancho left for Borussia Dortmund in 2017, but there are two separate cases against the Citizens that remain ongoing.
The Premier League is still conducting its own investigation into City's conduct regarding the signing of young players and third-party ownership. It began looking into the situation back in March and has since refused to comment on the open investigation.
In addition, the defending Premier League champions are also under investigation by FIFA, which is investigating whether City broke any rules in relation to the signings of numerous young players from overseas.
It was initially thought that City risked a two-window transfer ban, similar to what was handed down to Chelsea last summer after the Blues were found to have breached similar rules, but no such punishment has arrived as of yet.
City also remains in a battle with UEFA over a previous ruling that it broke Financial Fair Play regulations. The club has always denied that, and it continues to try to prove its innocence.
Amid all the controversy and drama away from the pitch, it has been a relatively difficult start to the season for Pep Guardiola's side. Having set the bar so high last season, City has struggled to match that level and currently finds itself six points behind Liverpool in the title race.