The Sussex Police officer had his suspension lifted following an inquiry by The Independent Police Complaints Commission (IPCC).
The probe followed an argument with two taxi drivers in Eastbourne on 5 September.
He will now face a misconduct meeting.
Sussex Police said the IPCC found no evidence of racist or criminal behaviour.
It was also alleged he threatened to remove a taxi driver's licence.
The IPCC also investigated allegations that an East Sussex-based inspector unlawfully accessed a force IT system in relation to the incident.
A file was passed to the Crown Prosecution Service, which decided to take no further action in relation to the computer misuse.
The inspector was not suspended but will also face misconduct proceedings.
The two officers were off-duty at the time of the argument.
Dep Ch Con Olivia Pinkney said: "We welcome the scrutiny of the IPCC in this matter.
"Sussex Police referred the matter for independent oversight after learning that the officer's behaviour had been perceived as racist.
"The report clearly identifies that there was no evidence of any racist behaviour or any other criminal offence in the way he acted."
A senior police officer suspended over allegations he used racist and offensive behaviour towards a taxi driver has been cleared of any wrong-doing.