Ali Dizaei was cleared in 2003
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The Black Police Association (BPA) has withdrawn a statement criticising Scotland Yard for compensating the man who led a probe into an Asian officer.
Ch Supt Barry Norman was awarded a payout for "injury to his feelings" after heading up a corruption inquiry into Ch Supt Ali Dizaei.
The BPA had said the payment was "a reward for racism" and threatened to suspend ties with the Met.
Following talks with the force on Monday, the BPA retracted its claims.
Crime taskforce
A BPA statement said it was "encouraged by discussions" with the Met's human resources director, Martin Tiplady.
He had said that the tone of the BPA's statement was "unnecessarily confrontational" and endangered the "good working relationship".
The BPA added that it would continue to work with the Met's black gun crime initiative, Operation Trident.
The Independent Police Complaints Commission (IPCC) has been asked to assist with further discussions and advice.
After Operation Helios - the investigation into Mr Dizaei - Mr Norman became Islington borough commander in north London before being appointed head of the Met's violent crime taskforce.