Mayor Winter was re-elected last year

Detectives had spent six months looking into claims that Martin Winter misappropriated grants while working with a development project in 2000.

South Yorkshire Police said the Crown Prosecution Service had found insufficient evidence to prosecute anyone over the claims.

Mayor Winter welcomed the decision and said he had been vindicated.

The claims concerned Mr Winter's activities while a volunteer worker with the Glass Park project in Doncaster.

'Intense investigation'

It was alleged he made a false claim for a grant and also misappropriated money obtained from grants.

Mayor Winter said: "My whole family have in the last 12 months withstood intense personal and public investigation into our lives and into a project with which I have always been proudly and publicly involved."

Det Ch Insp Gary Blinkhorn, from South Yorkshire Police's economic crime unit, said: "The police investigation has been rigorous and meticulous and all parties have co-operated fully with officers."

In May, the mayor was cleared of an allegation over election expenses.

He is still being investigated over a claim he influenced a planning application.

He has said the allegations against him were "politically motivated".