North Wales Police launched their own investigation but took no further action on the grounds there was “insufficient evidence to provide a realistic prospect of conviction” and that the Public Service Ombudsman concluded that there was “no evidence” that the mayor had breached its code of conduct.
Cllr Murray said: “I’m pleased this suspension has been lifted. It has been a very difficult few months that has put a huge strain on me but I would like to thank my fellow councillors, friends and residents for their support.
"As the evidence shows, I did not post these abhorrent sexist, homophobic and racist comments and I never would. I deplore the actions of the person who did this and I have secured my account to make sure this does not happen again.
"I am looking forward to resuming my duties as a councillor and representing the people of Prestatyn."
A spokesperson for North Wales Police said: "We can confirm that there was no evidence that Bob Murray placed the comments on Facebook and no further action was taken."
Chris Ruane, Labour MP for Vale of Clwyd, said: “We all share the horror at the comments that were maliciously placed under Bob’s name. They are not representative of our party and have no place in our society.
“I know that the last few months will have been difficult for Bob. I’m glad that following a full investigation by the Labour Party and the Ombudsman, Bob re-joins the Labour Group.
"He is a hard working local councillor and I look forward to campaigning alongside him again.”