Houghton quits as India coach
Houghton, who took over in 2006 and had a contract running to 2013, described as "nonsensical" a report claiming he had made a racist remark to a match official during India's friendly against Yemen last year.
The All India Football Federation (AIFF) conducted internal investigations and found no concrete evidence against the 63-year old Englishman, who has also coached the national teams of China and Uzbekistan among others.
"The AIFF feels that in the absence of any definitive and concrete evidence the allegations against Mr. Houghton cannot be sustained and therefore the AIFF agrees to withdraw all charges and allegations made against him," an AIFF statement said.
"However, Mr. Houghton, for his personal reasons, does not wish to continue working in India and in his position as the head coach of the Indian football team."