A Public Health England probe found that about 30 guests who fell ill after eating at the Buckatree Hall Hotel had been struck by the stomach bug norovirus, and there was no sign of any food poisoning.
The council’s own environmental health officers had also investigated the hotel near Wellington and tests of food samples all came back negative.
A spokeswoman today said the council would do everything it could to help the hotel maintain its strong reputation.
Liz Noakes, Telford & Wrekin Council’s assistant director for health and wellbeing, said: "I am pleased that Public Health England has found the source of the illness suffered by guests was not from any food prepared by the hotel.
"The Buckatree Hall Hotel is consistently compliant with food safety legislation and maintains high standards of food preparation. It also enjoys an excellent reputation locally.
"Reputationally this will obviously have caused the hotel some damage and we are anxious to do all we can to help them rebuild now that their name has been cleared and the infection revealed as the norovirus.”
A member of the wedding party had complained earlier this month after guests had reported sickness and cramps. Public Health England said after its tests that the norovirus bug was unlikely to have been spread by hotel staff because no guests outside the affected wedding party reported illness.
The hotel's general manager Wayne Jenson said: "We are pleased to report that the allegations were limited to the wedding party only and no other guests, residents or staff were affected by the norovirus.
"Throughout this investigation we have completely cooperated with Public Health England and the local authorities who have completed a professional and most thorough investigation.
"The health, safety and well-being of all our guests and indeed our staff at the hotel has and will always remain a priority for us."