James Lock will not be suspended from 'The Only Way Is Essex'.
The 27-year-old television personality was accused of using a racist term but a spokesperson for the ITVBe show has confirmed they will be taking no further action.
In a statement, they said: "We have concluded our thorough investigation and are satisfied that no racial abuse took place during filming on Wednesday 1st July."
The investigation was launched when a person nearby allegedly heard James refer to some people as "black f******".
A spokesperson said at the time: "Any issues of this nature are obviously taken very seriously and a thorough investigation is already ongoing.
"The cast member concerned denies these allegations."
James had been suspended from the show previously when he was suspected of taking a class A drug and was later charged with possessing the class C drug ketamine.
He pleaded guilty to the charges and was allowed to return to the show three months later.
A source said at the time: "Lockie is an immensely popular chap with big story-lines but it is touch and go whether he stays on the show."