The Ishaqi controversy was triggered by a video, broadcast by the BBC, showing footage of a number of dead adults and children whom Iraqi police allege were among 11 civilians rounded up and deliberately shot dead by US troops in March.
The events in Ishaqi are among a number of alleged atrocities by US troops in Iraq.
In the wake of an alleged massacre in Haditha, US troops are starting extra training in moral and ethical values.
Normal procedure
According to officials the investigation concluded that the US troops followed normal procedures in raising the level of force as they came under attack upon approaching a building where they believed an al-Qaeda terrorist was hiding.
However the officials spoke on condition of anonymity because the results had not been publicly released.
According to the US defence officials the Army's Criminal Investigation Division reviewed the results of the investigation and found no reason to probe further.
The officials said the night raid was conducted in the village of Ishaqi, about 80 km north of Baghdad, by a ground assault force. After being fired upon from the vicinity of the targeted building, the soldiers called in air strikes by an Air Force AC 130 gunship, which attacked the building, the defence officials said.
However, a report filed by Iraqi police accused US troops of rounding up and deliberately shooting 11 people in the house, including five children and four women before blowing up the building.
Other incidents
The incident came months after allegations of a massacre by Marines of 24 Iraqi civilians in Haditha last November.
The military is still conducting two investigations into the Haditha case, one to see if US troops committed crimes there and a second to see if the actions were covered up.