David TC Davies had been reported to the police over the leaflet which he denied was discriminatory.

The flyer, entitled "Gypsy and Traveller site coming to your area soon!", attacked the local council over a lack of consultation.

Mr Davies, who was appointed Wales Secretary last October, went on to ask residents of his Monmouthshire constituency: "Would you like to see a Traveller site next to your house?"

Monmouthshire County Council had a Conservative majority until May last year when Labour became the largest group.

The Travelling Ahead Advocacy and Advice Service posted the "unacceptable" leaflet online and said they had complained to the Conservative party, the Equality Commission and the police.

In a statement, Gwent Police said they would not be taking further action over the leaflet.

"We launched a review into the contents of a leaflet published and distributed in Monmouthshire regarding proposals for a development of a gypsy and traveller site," said Chief Superintendent Carl Williams.

"Officers have spoken to several people from the gypsy and traveller and settled communities before seeking advice from the Crown Prosecution Service (CPS) on whether the leaflet's contents constituted any offences.

"Any allegation of discrimination is taken extremely seriously and following this review, we will not be taking any further action."

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Labour's Jonathan Ashworth previously said "difficult issues" should be approached "sensitively".

But Deputy Prime Minister Oliver Dowden defended Mr Davies.

"He's standing up for his constituents, making their case for them and I totally support his right to do that," he said.