Four Iranian footballers sparked controversy by wearing green wristbands during the June 17 fixture against South Korea -- an action deemed political by some.
Green was the campaign color of one of Iran's presidential contenders in the country's 10th presidential election held on June 12.
CNN had earlier reported that the four players -- Ali Karimi, Mehdi Mahdavikia, Hossein Ka'abi, and Vahid Hashemian-- had been banned for life over sporting green wristbands -- a claim that was later dismissed by the team's manager Afshin Qotbi.
Football's world governing body said last week that it would review all relevant match reports from the fixture to decide whether any rules on player dress were breached.
Under the rules drawn up by the International Football Association Board, "the team of a player whose basic compulsory equipment has political, religious or personal slogans or statements will be sanctioned by the competition organizer or by FIFA.''
"We received the match reports and there was no reference to the wristbands," meaning there will be "no further action," FIFA said in an e-mailed statement on Thursday.