Salford City Council will not seek an independent investigation into the £164,000 bail out of a local rugby club, despite finding governance errors.
A meeting of the local authority's audit and accounts committee yesterday voted against the move, after an internal review last week revealed the decision to subsidise the Red Devils was not properly scrutinised.
Yesterday's audit report suggested that while actions were in line with procedures, errors were made in the completion of paperwork.
A council review had concluded the approval of mayor Ian Stewart surrounding the move was 'not formally recorded' and failed to follow guidelines designed to boost transparency.
The former council officer who proposed the deal later took voluntary redundancy before taking a role with the Red Devils.
Following the committee meeting, the mayor pledged to 'strengthen governance and decision making processes'.
'The strong leadership I and the city council showed in 2013 by making this decision has safeguarded our stadium, our rugby club and importantly the return of the city's £1.5m loan to the club,' Stewart added.
'This has all been done in the best interests of the people of Salford and the long-term regeneration of the city. It is clear that the local government rules would not have allowed us to use the money invested in this agreement to support frontline services.'
Salford City Council jointly owns the stadium and its surrounding land, which is valued at around £25m.