FIFA will not open disciplinary proceedings against Croatian side HNK Rijeka after deciding there was not enough evidence to back up Manchester City's allegation.
City coach Patrick Vieira took his under-21 team off the pitch during the July friendly after claims French midfielder Seko Fofana, who had been shown a red card for an off-the-ball incident, had been racially abused just before half-time.
Piara Powar, executive director at anti-discrimination network FARE, praised Viera for his decision to take his side off by saying it sent out a "categorical" message.
However, having investigated the matter, FIFA will not be taking any further action.
"The chairman of the FIFA disciplinary committee considered that, based on the information at his disposal, there were not enough elements to justify the opening of disciplinary proceedings," read a statement.
"Also in relation to this matter, the chairman was pleased to observe that Mr Davor Suker [Croatian Football Federation president] and Mr Patrick Vieira engaged positively to work through the issue.
"The relevant parties were notified on Friday Dec. 5 in the form of a letter, which also emphasised FIFA's zero-tolerance stance against any form of discrimination."