Detectives investigating the transfer of players while the south coast club was under the control of Venables confirmed they had found no evidence against the former England coach.

It was disclosed earlier this month that an inquiry had been launched into the transfer of three Australian players to the club last season.

Venables was at one stage coach to the Australian national team.

A spokesman for Hampshire Police said: "Hampshire Constabulary's fraud squad has completed its evaluation of paperwork and information concerning the transfer of three Australian players to Portsmouth Football Club last season.

"We have found no evidence of dishonest or corrupt practice of any person involved in those transfers and that investigation is now closed."

Investigation goes on

Detectives, however, are continuing to investigate allegations of "bad business practice" made by the new board of directors at the club under the chairmanship of Martin Gregory.

The exact nature of the allegations is unclear, but they are not understood to involve the transfer of players.

The police spokesman added: "We are continuing our assessment of the original complaint made by the directors of Portsmouth Football Club which alleged instances of bad business practice at the club."

News of the investigation came just days after Crystal Palace, where Venables is now manager, called in the FA to examine the transfers of two players from China.