The Football Association says it has found no evidence that Manchester City made an illegal payment to Jadon Sancho's agent when the player was 14, Sky Sports News understands.
A report in German publication Der Spiegel alleged City paid Emeka Obasi Β£200,000 when they signed Sancho from Watford in 2015.
Der Spiegel also claimed City attempted to conceal the payment by giving Obasi a contract as a scout.
Both FA and FIFA rules state agents cannot represent players until they turn 16.
While the case appears to be closed, the FA reserves the right to reopen the investigation should new information become available.
Sancho spent just two years at City and did not make a first-team appearance before moving to Borussia Dortmund.
He has since became a regular in the German side's first XI and has become a fixture in the England squad, earning 10 caps.
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Not surprised a bit. The ugly propaganda against City is well known to us now. Last year when we were playing breathtaking football, all they talked was 'this' false item, never giving us our due. Guess what, we will keep shinning, your VAR is just an obstacle to us, it's not gonna stop is. ππππππ