The Bishop of Gloucester will not face criminal charges over historic sex abuse allegations following an enquiry by the Metropolitan Police.
Rt Rev Michael Perham stepped back from ministry in August a few days before the allegations became public.
He was interviewed under caution by detectives about allegations of assault from the early 1980s.
A statement from Rt Revd Paul Butler, the Bishop of Durham and Lead Bishop on Safeguarding for the Church of England said: "We can confirm that we have been notified by the Metropolitan Police that following enquiries they are to take no further action regarding the allegations made against the Rt Rev Michael Perham, Bishop of Gloucester.
"The Church of England takes any allegations of abuse very seriously and is committed to being a safe place for all. As in any case where allegations of this nature are made any police investigation is followed by a rigorous process to assess whether there are any ongoing safeguarding issues.
"We would ask for continuing prayers for all of those affected by these events and those involved in ongoing processes."
Bishop Perham said: "It was right that the allegations should be fully investigated and I am gratified that the police have completed the investigation and concluded that there are no grounds for further action to be taken.
"My family and I are profoundly grateful for all the support and affirmation we have received through this very difficult time."
It is understood that he hopes to return to ministry in time for his retirement in November after Church safeguarding procedures have been completed.
