UEFA said there was no need to respond, adding that the Bayern Munich goalkeeper “was promoting a good cause”.
Neuer, 35, wore the armband for games against France and Portugal, to show his support for the LGBTQ + community during Pride Month.
But the European sports governing body has investigated whether his actions could be considered a political statement, which is not allowed.
A spokesperson said: “UEFA has examined the armband worn by the player in question and, considering that he was defending a good cause, namely diversity, the team will not be subject to disciplinary proceedings. “
The German Football Association said on Twitter that it had also received a letter from UEFA confirming the case was closed.
They wrote: “UEFA today shared with the DFB that it has stopped examining the rainbow captain’s armband worn by Manuel Neuer.
“In a letter, the armband was rated as a team symbol for diversity and therefore for a ‘good cause’. “
The association previously said Neuer wears the rainbow armband as a symbol of “the entire team’s clear commitment to diversity, openness, tolerance and against hate and exclusion ”.