The Sun reports that Aston Villa have withdrawn their threat of legal action against Jamie Carragher. Last week, Villa announced that they were preparing to sue the Sky Sports pundit over comments made on a podcast.
Nassef Sawiris, the club's co-owner and chairman, issued a statement: "Aston Villa will be taking legal action against Jamie Carragher for unacceptable and insulting comments he made about the club and its fans.
"Aston Villa will not allow anyone to stop our momentum as we rise in English and European football."
Previously, Jamie Carragher had seemingly implied that Aston Villa manager Emery would immediately accept the Manchester United job if given the opportunity.
The Liverpool legend said on "The Overlap Football" podcast: "I think Emery does an absolutely brilliant job year in, year out.
"With so many squad changes and players needing time to adapt, he still manages to do it year after year.
"However, the reason I'm responding to Aston Villa fans is because I can't believe that a manager who has been so successful in the Europa League — if a player wins the Europa League three or four times, you'd definitely want to challenge for the Champions League.
"Aston Villa will never be Manchester United. I just don't think he did very well at Paris Saint-Germain or Arsenal, maybe that was because of big-name players in the dressing room and similar issues.
"But he would certainly want to manage a big club again. That's the chain in football, whether you like it or not.
"So Real Madrid will poach Manchester United's best players, just like they did back then when they signed Cristiano Ronaldo.
"And there will be smaller clubs than Aston Villa who will take Villa's players or manager, so Aston Villa fans, shut up. Aston Villa will never be Manchester United."
Jamie Carragher retracted his comments on Friday's "Overlap Daily" show, admitting he shouldn't have criticized Aston Villa fans.
He said: "Things got out of hand. I ended up telling them to f*** off, maybe I shouldn't have done that. But I was just joking because they kept pestering me on my social media.
"So when I said 'f*** off,' I meant for them to leave my social media. If you want to moan at me in a pub with Mr. Goldbridge, that's absolutely fine, but don't come on my social media!"
"We were all joking, and I used to be an Aston Villa fan myself."
Following his latest statement, Aston Villa will now not proceed with legal action.