Bad boy striker Costa was pictured kicking out at Kompany during Chelsea's win over City at Stamford Bridge on Wednesday night.
But Mirror Sport understands referee Mike Dean saw the incident and did not deem it a serious red card offence anyway.
Therefore, it cannot be referred to the FA for potential retrospective action and that will be a huge relief for Chelsea.
Costa has cleaned up his act this season and his lash out in the 70th minute was largely out of keeping with his improved discipline on the pitch.
Chelsea boss Antonio Conte admitted after the game he did not see the incident fully but will be happy there will be no further action.
Conte said: “During the game it's very difficult... Yes, you see this kind of contact but it's impossible to tell... to judge this kind of contact.
“Against Crystal Palace I told you I didn't see a clear handball and penalty for us, and also a red card, because it's very difficult to see these type of situations during the game''.
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