The claims by Fairfax Media were not true, a jury in Sydney ruled on Monday.
Massage therapist Leanne Russell had told the hearing that Gayle exposed himself to her in Sydney in 2015.
However, Gayle successfully argued the incident did not happen. It is unclear how much he will seek in damages.
"I am a good man. I am not guilty," Gayle told reporters outside Sydney's King Street court complex.
"I am glad the public actually get a chance to read into things and they can hear what actually transpired."