The 28-year-old Spaniard, who faced being stripped of his 2010 Tour title, was suspended in August after testing positive for a small amount of the banned anabolic agent clenbuterol during last year's race.
"We have received confirmation that the investigation has been shelved and Alberto can race again," Andy Ramos told reporters after being notified by the Spanish federation (RFEC).
"Justice has been done. The UCI will study the decision and for our part there is nothing to appeal. We hope the UCI don't appeal." He added that Contador, who has denied deliberate wrongdoing saying the failed test was due to contaminated meat, was "very well, very pleased." The case now moves back into the hands of the UCI, cycling's world governing body, and the World Anti-Doping Agency (WADA).
They have one month to decide whether to appeal to the Court of Arbitration for Sport (CAS) in Switzerland, if they disagree with the Spanish federation (RFEC)'s ruling.
In the meantime, Contador will be able to join up with his team Saxo Bank again and could even defend his Tour of Algarve title when that race gets underway on Wednesday.
