The Standards in Public Office Commission has decided not to pursue an investigation into the recruitment by the Minister for Transport, Mr Cullen, of Waterford-based PR consultant, Ms Monica Leech.
The State's ethics watchdog met for over an hour this evening to consider the case.
In a statement released this evening, the Commission said the evidence did not establish a prima faciecase which would have warranted an investigation
Minister Cullen welcomed the announcement this evening.
'Taken together with the Quigley inquiry, all matters relating to this issue have been comprehensively examined by independent persons,' he said.
He said he was looking "forward to continuing to work hard in my role as Minister for Transport and to delivering on the many challenging and exciting policy initiatives under my responsibility."
The Commission had deferred a decision on the matter earlier this month to seek legal advice in relation to Ms Leech's contracts with the Department of the Environment and the Office of Public Works.
Ms Leech was hired to provide communications advice at a rate of €650 to €800 per day, when Mr Cullen became the Minister for Environment in 2002.
The Government last week said it had ended its working relationship with Ms Leech who has received more than €300,000 for her work.