Premier Foods is set to escape any prosecution for the role it played in last year's Sudan 1 scandal.
The food company, which manufactured the contaminated Worcester Sauce that led to hundreds of recalls, will face no further probe.
Rochdale Metropolitan Borough Council wrote to Premier Foods last month to inform it that despite a lengthy investigation involving "significant FSA resources", it would not be pursuing prosecution. A Premier Foods spokesman said compensation claims from customers were still in the hands of its insurers.
Last month, East Anglian Food Ingredients, the initial source of the contaminated chilli powder ingredient, was fined £5,000. An inquiry continues at Derbyshire and Lincolnshire councils.