Striker Thierry Henry will not be punished by Fifa for his handball in France's World Cup finals play-off against the Republic of Ireland.
The world governing body's disciplinary committee concluded there was "no legal foundation" to deal with the case.
The Barcelona striker handled the ball twice in the build-up to the decisive extra-time goal from William Gallas.
The Republic did not qualify for the 2010 World Cup and Fifa rejected a request to have the match replayed.
Previously, Fifa president Sepp Blatter said former Arsenal player Henry was guilty of "blatant unfair playing" but stopped short of calling for him to be punished.
Henry's defence argued successfully that Fifa's disciplinary code does not give the committee the ability to punish such incidents, something the committee accepted.
"Handling the ball cannot be regarded as a serious infringement as stipulated in the Fifa disciplinary code," said a statement.
"There is no other legal text that would allow the committee to impose sanctions for any incidents missed by match officials."
Henry's handball caused an international furore, with the Republic claiming they had been "cheated" out of a place in the World Cup and demanding a replay.
The extra-time goal meant the match in Paris ended 1-1, with France going through 2-1 on aggregate.
Henry, 32, apologised over the incident and later admitted it left him contemplating quitting international football.
On the back of the controversy surrounding the incident, Fifa met at Cape Town to consider goal-line technology and extra referees at the World Cup.
However, the sport's governing body decided against using additional referees in South Africa and have instead opted to set up an inquiry into the benefits of video technology and extra officials.
BBC Sport - Football - France's Thierry Henry escapes Fifa ban over handball
The world governing body's disciplinary committee concluded there was "no legal foundation" to deal with the case.
The Barcelona striker handled the ball twice in the build-up to the decisive extra-time goal from William Gallas.
The Republic did not qualify for the 2010 World Cup and Fifa rejected a request to have the match replayed.
Previously, Fifa president Sepp Blatter said former Arsenal player Henry was guilty of "blatant unfair playing" but stopped short of calling for him to be punished.
Henry's defence argued successfully that Fifa's disciplinary code does not give the committee the ability to punish such incidents, something the committee accepted.
"Handling the ball cannot be regarded as a serious infringement as stipulated in the Fifa disciplinary code," said a statement.
"There is no other legal text that would allow the committee to impose sanctions for any incidents missed by match officials."
Henry's handball caused an international furore, with the Republic claiming they had been "cheated" out of a place in the World Cup and demanding a replay.
The extra-time goal meant the match in Paris ended 1-1, with France going through 2-1 on aggregate.
Henry, 32, apologised over the incident and later admitted it left him contemplating quitting international football.
On the back of the controversy surrounding the incident, Fifa met at Cape Town to consider goal-line technology and extra referees at the World Cup.
However, the sport's governing body decided against using additional referees in South Africa and have instead opted to set up an inquiry into the benefits of video technology and extra officials.
BBC Sport - Football - France's Thierry Henry escapes Fifa ban over handball