Pakistan Cricket Board chairman Ijaz Butt has withdrawn his remarks in which he had alleged that England player had thrown the third one-dayer against Pakistan at the Oval but maintained that he was misunderstood.
Butt had said England players were paid "enormous amounts of money" to lose the third ODI match at the Oval.
Responding to his remarks, the England and Wales Cricket Board had threatened legal action and demanded an unreserved apology from him.
Butt met his ECB counterpart Giles Clarke in London yesterday and both the boards issued a joint statement.
"I wish personally and on behalf of the Pakistan Cricket Board to withdraw the comments I made concerning the England and Wales Cricket Board and each of the England players who played in the NatWest One Day International at the Brit Insurance Oval on Friday 17 September.
"It is regrettable that there was a misunderstanding arising from my comments," the statement said.
Butt said he "never intended to question the behaviour and integrity of the England players nor the ECB nor to suggest that any of them were involved in any corrupt practices or in a conspiracy against Pakistan cricket."
Butt had earlier said that he was merely stating what the bookies were saying.
He now said, "I wish to make it clear that I have never seen any evidence of any wrong doing by any England player or the ECB at any time.
"I deeply and sincerely regret that my statements have been interpreted to cast doubt upon the good names of the England players and the ECB and hope that this public withdrawal will draw a line under the matter."
In the same statement ECB and the England players who played at the Brit Insurance Oval warmly said they "welcome this withdrawal and now regard the matter closed."
ECB chairman Giles Clarke confirmed that following this statement he is continuing in his role as the ICC Pakistan Task Team chairman.