Butt had said he had heard from bookmakers that England's players were paid to lose the third one-day international to Pakistan on Sept. 17.
The England cricket board had threatened Butt with legal action if he didn't withdraw the accusation.
The board released a statement Wednesday quoting Butt as saying: ''I never intended to question the behavior and integrity of the England players nor the ECB nor to suggest that any of them were involved in any corrupt practices or in a conspiracy against Pakistan cricket.''
The board says it now regards the matter as closed.
