England coach Sven-Goran Eriksson was cleared of any wrongdoing by the Football Association on Thursday following the row over his relationship with a secretary working for the ruling body.
The 56-year-old Swede's position had been in question after suggestions that he may have misled the FA about his affair with Faria Alam.
"In the case of Sven-Goran Eriksson, the Board decided on the basis of the report (inquiry) and on legal advice that there is no case for him to answer," the FA said in a statement on its website following a board meeting in central London.
Eriksson's agent Athole Still said the Swede was "very pleased and relieved" at the verdict, Sky Sports News reported.
Alam, however, resigned her post on Thursday. The FA said its board had decided "it is not appropriate to make any public statement with regard to her role in this inquiry".
The FA also said it had accepted the resignation of its director of communications Colin Gibson.
British newspaper the News of the World on Sunday published transcripts of a phone conversation in which Gibson offered details of Eriksson's relationship with Alam in return for secrecy over FA chief executive Mark Palios's relationship with the same woman.
Palios resigned on Sunday.
The FA said all Thursday's decisions were "unanimous" and that it would "now commence the search for a new chief executive officer."
However, the ruling body's embarrassment is likely to deepen on Sunday with Alam set to sell her story to two tabloid newspapers.
SURVIVED CONTROVERSY
Publicist Max Clifford told Sky Sports News that Alam had submitted her resignation to the FA earlier on Thursday.
The ruling body is scrambling to retain its credibility after the shambolic handling of the affair.
It initially denied newspapers reports that Eriksson had had a relationship with Alam but was later forced later to confirm that both the Swede and Palios had both had relationships with the personal assistant.
The FA set up an inquiry headed by a lawyer to investigate why the erroneous denial was issued, with the question of whether Eriksson had misled FA officials pivotal.
Eriksson, who seldom comments on his private life, issued a statement saying he had never "confirmed or denied" the affair.
Media reports suggested the FA would have been forced to pay Eriksson, who signed a new contract in March, around 14 million pounds ($25.55 million) in compensation if it had decided to sack him.
Eriksson was not present at the board meeting on Thursday.
It is not the first time the Swede, who became England manager in January 2001, has survived controversy over his private life.
Two years ago he kept his job after revelations that he had an affair with Swedish television celebrity Ulrika Jonsson.
England's next match is a friendly against Ukraine on August 18 followed by their first two 2006 World Cup qualifying matches against Austria and Poland in early September.
(Additional reporting by Mark Meadows)