The Office of the Attorney General (OAG) indicted beIN chairman and PSG President Al-Khelaifi and former FIFA secretary general Jérôme Valcke in February.

An investigation revealed Valcke was refunded the down payment of around €500,000 (£420,000/$539,000) he had made to a third party on the purchase of a villa in Sardinia, which the OAG said Al-Khelaifi had bought through a company instead of the disgraced former FIFA official.

Valcke allegedly received from Al-Khelaifi the exclusive right to use the villa for a period of 18 months, without paying the estimated rent between €900,000 (£755,000/$971,000) to €1.8 million (£1.5 million/$1.9 million).

The OAG claimed this represented "criminal mismanagement", an allegation the Federal Court said was absent from the indictment.

The Federal Court added the deal between Al-Khelaifi and Valcke was made in a "private capacity and without any connection" to Valcke's role at FIFA.

The OAG has 10 days from the Federal Court ruling, made on March 27, to appeal.

A complaint against Al-Khelaifi and Valcke concerning allegations of bribery in connection with the award of media rights for the 2026 and 2030 World Cups had earlier been dropped after FIFA reached an "unspecified amicable agreement" with the Qatari official.

Al-Khelaifi, a member of the UEFA Executive Committee, described the allegations relating to the villa agreement with Valcke as "a secondary technical charge" when responding to the OAG's indictment last month.

The OAG is led by Attorney General Michael Lauber, who led the Swiss investigation into FIFA and has been sanctioned for disloyalty, lying and breaching his office’s code of conduct in connection with the case.

"These conditions of mismanagement are absent from the OAG’s accusation," the ruling from the Swiss Federal Court said.

"Indeed, the accusation does not set out the specific management obligations resulting from his position as FIFA general secretary which Jérôme Valcke allegedly breached in return for the economic advantages he allegedly received from Nasser AI-Khelaifi in connection with the ‘Villa Bianca’.

"The indictment also fails to explain what financial damage Jérôme Valcke has allegedly caused FIFA in this way.

"On the contrary, there is every reason to believe, on reading the description in the indictment, that the repayment to Jérôme Valcke of the deposit which he had paid for the purchase of the said villa after Nasser Al-Khelaifi became the owner, and the transfer by the latter in favour of the aforementioned of a free use of this property, are the result of an agreement concluded between them in a private capacity, without any connection with Jérôme Valcke’s professional activity and the function of general secretary that he exercised within FIFA."