Danny Cadamarteri will not be punished by City after being sentenced to 180 hours of community service for lying to police.
Cadamarteri, 22, who missed training yesterday to attend court in Liverpool, had admitted conspiracy to pervert the course of justice.
But he has escaped a further rap from the club, who are set to reinstate him when they come out of administration.
The incident happened before the striker joined the Bantams from Everton in February and it was written into his contract that no internal action would be taken.
Cadamarteri said: "I have made mistakes. I've been stupid and now I've been punished for being stupid.
"I'd like to thank my friends and family and the vast majority of the Merseyside people, who have supported me, and I'd also like to apologise to anyone directly affected by this.
"I'm appreciative the court haven't taken away my liberty and now I am looking forward to doing what I do best, which is playing football."
Cadamarteri lied to police when he was arrested for his part in a late-night fracas with a young woman in Liverpool city centre in October 2000.
Cadamarteri told detectives he was nowhere near the scene of the assault and it was a case of mistaken identity. He kept up the lie for ten months.
Judge David Clarke warned: "If you had gone into the witness box and committed perjury, you would undoubtedly be going to prison."
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