The league also announced on Monday that WA Police would take no action against Ryan.
The AFL's integrity unit became involved after the footage was posted last month, the day after Ryan was embroiled in the violent one-on-one physical altercation following a January 17 festival in Fremantle.
In the footage, the two men throw a flurry of punches at each other while surrounded by onlookers cheering the fight.
"The AFL Integrity Unit inquiries and investigations by WA Police determined that the altercation occurred after Ryan and his companions were the victims of an attack by a larger group of people whilst leaving the event," the league said in a statement."WA Police confirmed to the AFL that officers were in the area at the time of the fight and that Ryan was being treated as a witness to an incident where his group was pursued by a larger group, resulting in one of his female companions being assaulted and suffering facial injuries."It was determined that Ryan attempted to de-escalate the incident and walk away from the group before being confronted, leading to the fight that was captured on social media.
"WA Police have advised the AFL that they intend to take no action against Ryan as a result of the matter and that he was co-operative and assisted the police by attending and providing police statements."
The AFL added Ryan had not been drinking that night and was driving.
Ryan, 28, is one of West Coast's biggest stars and an important cog in leading the club through the biggest rebuild in their history.Â
The Eagles also released a statement on Monday night, supporting Ryan.
"While our club doesn't condone violence, this was not a situation that Liam wanted to be involved in and he tried to de-escalate the matter before the altercation took place," Eagles football boss John Worsfold said."Liam fully cooperated with WA Police, AFL Integrity Unit and club inquiries, and he is now keen to put the matter behind him."We will continue supporting Liam while also educating our entire playing group about the situations they can find themselves in at public events, and the potential risks involved."