Clattenburg had been accused of using a racially offensive term towards Nigeria midfielder Mikel Obi during the match at Stamford Bridge last month, which Man United won after a series of controversial officiating decisions.
The FA's decision to drop the case hinged around the fact that the only witness of the alleged abuse, Brazilian Ramires, does not speak English as a first language, and that other players who were closer to Clattenburg at the time - including Mikel - heard nothing.
The Metropolitan Police had earlier closed their case, launched following a complaint from the Society of Black Lawyers, after no victim came forward.
"The evidence for the allegation came from one witness, Ramires," the FA clarified in a lengthy statement.
"Ramires, whose first language is not English, explained that his instinctive reaction was to seek confirmation from John Obi Mikel as to what the referee had said.
"John Obi Mikel, who was being spoken to by the referee, was much closer to the referee than Ramires and did not hear what it is suggested was said to him.
"Three other witnesses, i.e. the other Match Officials, to whom everything said by referee was relayed via their communication equipment, are adamant the alleged words were not uttered.
"For completeness, but of lesser weight, two other players, whose first language is English and were in the vicinity, did not hear anything untoward.
"There is nothing in the video footage to support the allegation."
Clattenburg was accused of saying the word "monkey" while speaking to Mikel, and was adamant no such term was used.
He was initially also accused of insulting Spain international Juan Mata, but that was dropped by Chelsea after an internal investigation.
Clattenburg had been stood down since the alleged incident, and will not referee this weekend.
The Durham native, who is a FIFA referee and regarded as one of the top officials in Europe, expressed his relief that the case is over.
"To know you were innocent of something but that there was the opportunity for it to wreck your career was truly frightening," he said.
Separately, Mikel has been charged for his behaviour after the match, when he was alleged to have confronted Clattenburg in an angry exchange in his office.
Source : Yahoo Sport

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