Instead, CNSW has invited Lee to join a sub-committee of its board to "address issues as to the future direction of cricket in NSW", a CNSW statement said.

The decision will be seen as a major victory for Lee, who last month had called for Gilbert's sacking in an interview with The Sun-Herald.

As a current player with the Sydney Sixers in the Big Bash League, Lee was slapped with two charges following a report from Cricket NSW.

Lee refused to back down as he vowed to air his grievances during the hearing.

The former Test spearhead questioned the appointment of Stuart ahead of Trevor Bayliss as coach and the departure of young batsmen Phil Hughes and Usman Khawaja to rival states - where they have since catapulted themselves back into the Australian Test set-up.

Lee said after the hearing that common sense had prevailed.

"I'm really happy they've dropped all charges. I think the game will be a lot better off now moving forward because there's a chance to meet with the sub-committee of the board and express my views on the way to improve it," Lee said.

"I'm happy with the outcome, I'm happy with the way things progressed."

‘‘The last 10 years it [Cricket NSW] has been going through some tough times. I’m actually looking forward to improving that and getting NSW back to where it was.

‘‘I bleed blue and that’s a huge part of me.’’

When asked if Cricket NSW could rise back to the top with Gilbert at the helm Lee said: ‘‘We’ll have to wait and see, won’t we? I’m not really in a position to comment on that.’

Lee had been charged for alleged unbecoming behaviour and for making detrimental public comment in accordance with Cricket Australia's code of conduct.

"Both parties acknowledge that there is a code of conduct in place and to which all contracted players must adhere," CNSW said.

"Both parties are very pleased to have found a way forward and at having arrived at a very positive mutual outcome.

"Brett Lee looks forward very much to working constructively with CNSW into the future."

with AAP