After less than two hours of deliberation, the jury found Fairfax media had failed to establish the truth of a series of reports it ran alleging the 103-test cricketer had exposed himself to a masseuse during the tournament.
It also found Fairfax had failed to establish that the allegation Gayle had propositioned the masseuse was "substantially true".
"I came all the way from Jamaica to actually defend myself and my character as well. At the end of the day I'm very, very happy," Gayle told reporters outside the court.
"I'm a good man. I'm not guilty."
The jury also found that Fairfax, which publishes The Sydney Morning Herald and The Age newspapers, was motivated by "malice" in publishing the stories.
A hearing over the amount of damages will be held at a later date.
Fairfax Media later released a statement saying said the company was "concerned with the conduct of the trial to the extent that on Friday it sought an order that the jury be discharged and a new trial ordered".
"Fairfax believes that it did not get a fair trial," it concluded. "It is seriously considering its appeal rights."
(Reporting by Nick Mulvenney, editing by Amlan Chakraborty)
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