A probe was launched after TikTok footage emerged of players and others who appeared to be singing using offensive language inside an Ibrox function suite.
At the time, Scottish Justice Secretary Humza Yousaf said that Rangers should sack any players if they were "found to be guilty of anti-Catholic hatred.”
But after extensive inquiries Police Scotland confirmed no criminality had been established.
A Freedom of Information request was then published by a supporter which revealed Police Scotland’s cyber crime unit reviewed an original recording of the video and no sectarian language was heard, the BBC reports.
The police response read: "The assessment by Police Scotland is that the video circulated on social media was edited to include sectarian language.
"From the evidence gathered no crime has been established relating to the Rangers players or staff."
Rangers declared themselves confident that no criminality had taken place, and said it was “deeply concerning” that the video had been “taken as genuine”.
At the time of the celebrations, fans were criticised heavily by the club and Scottish football authorities as police in riot gear were forced to break up the crowds in George Square hours after the team lifted the Scottish Premiership trophy following their final game against Aberdeen.
Several officers were injured and around 40 people have been arrested after people in the mass gathering caused a disturbance and flouted Covid-19 rules a day after Glasgow was given notice of further restrictions.