Angel di Maria has been cleared of any wrongdoing for his gesture after being substituted in Real Madrid's 3-0 win over Celta Vigo.
Di Maria was booed by the Real fans as he left the field during the second half of Monday's La Liga victory, and appeared to respond to that display of derision by grasping his groin.
The Argentina winger has since insisted that he meant no offence and, after Real coach Carlo Ancelotti called for an end to the controversy on Wednesday, the club have now decided not to take any disciplinary action.
A statement on the club's official website read: "Real Madrid announces that the investigation opened into Angel di Maria has been closed without penalty.
"The instructor has concluded that Di Maria was not responsible for making offensive gestures and showing contempt for the public of the Santiago Bernabeu Stadium on January 6, and therefore he did not commit any offence worthy of disciplinary action.
"As a result, the board of directors have decided to close the matter."
Both Real and Di Maria will look to put the matter behind them when the capital club host Osasuna in the Copa del Rey on Thursday.