A second police investigation of Pembrokeshire CC chief executive Bryn Parry-Jones has not discovered any evidence of criminal activity.
The embattled chief executive was found by auditors in January to have taken an unlawful pension supplement.
That set off a chain of events that led to the council last month passing a motion of no confidence in him.
Gloucestershire detectives carried out both investigations because of the close relationship between the council and the local Dyfed Powys force.
The first, into the pension supplement award, in May found no evidence of criminal activity and the second, started in August after a whistleblower came forward with further evidence, has now reached the same conclusion.
A Dyfed Powys Police statement said: “Gloucester Constabulary have now completed their enquiries and have confirmed that following an objective and independent analysis of the evidence, they did not find any evidence to suggest that any criminal offences had taken place.
“On the basis of this, Dyfed Powys Police will be taking no further action in relation to these matters. The local authority have been advised of this decision.”
A disciplinary committee is due to convene on Friday for its fourth hearing concerning Mr Parry-Jones since the no confidence vote.
It was set up after the council passed a motion to begin disciplinary proceedings and to authorise leader Jamie Adams (Independent Plus) to “engage with the chief executive and his representative to explore a resolution of the present situation faced by the council”.