Bayern Munich coach Carlo Ancelotti has agreed to donate 5,000 euros (5,200 dollars) to a charity run by the German football federation DFB following his middle finger gesture towards Hertha Berlin fans.
The DFB control panel dropped investigations into the incident on condition Ancelotti made the payment, a DFB statement said.
Ancelotti had admitting making the gesture, which he said came after he had been spat at following Saturday's Bundesliga match which ended 1-1.
Bayern said in a statement: "We regard Carlo Ancelotti's gesture in response to being spat at as an understandable emotional reaction.
"The DFB panel has accepted this position and will cease its inquiry."
Ancelotti will make a donation to the DFB charity "as an apology for his gesture," it added.