The claims by Fairfax Media were not true, a jury in Sydney ruled on Monday.
Massage therapist Leanne Russell had told the hearing that Gayle exposed himself to her in Sydney in 2015.
However, Gayle successfully argued the incident did not happen. It is unclear how much he will seek in damages.
Fellow cricketer Dwayne Smith, who was also in the dressing room, supported Gayle's version of events.
Gayle's legal team argued that Fairfax journalists wanted to "destroy" the cricketer.
"I am a good man. I am not guilty," Gayle told reporters outside Sydney's King Street court complex.
"I am glad the public actually get a chance to read into things and they can hear what actually transpired."
Fairfax Media said it would investigate whether to appeal, claiming that the jury had been "misled in a way that prejudiced Fairfax".
"It will cost the company a lot of money unless we can reverse it on appeal," said Peter Bartlett, a solicitor acting for the company.