The Football Association has found no evidence that Manchester City made an illegal payment to the agent of their former player Jadon Sancho.
The PA news agency understands the governing body has halted its investigation into allegations made in Der Speigel earlier this year.
The German publication claimed City made an irregular payment of £200,000 to the agent, Emeka Obasi, when Sancho joined the club from Watford in 2014.
Sancho was 14 at the time. FA rules ban players from being represented by agents until the year they turn 16.
It was also claimed City disguised the payment in a scouting contract.
In February it was reported the FA had launched an investigation into the allegations. It is understood that has now been concluded with no evidence obtained to substantiate the claims. The governing body, however, would reserve the right to reopen the investigation should new information become available.
City have been contacted for comment.
Sancho joined City in a deal reportedly worth £150,000. He was rated highly by the club during his years in their Academy but he opted to leave before graduating to the first team, joining Borussia Dortmund for £8million in 2017.
Now 19, the midfielder has flourished at the German club and is a regular England international with 10 caps.
