Gayle and his supporters congratulated each other in court as the jury of four announced their unanimous verdict after deliberating for two hours at Sydney's King Street court complex.
Gayle said Fairfax published articles claiming he had intentionally exposed himself to masseuse Leanne Russel in the team's dressing room at the 2015 World Cup.
Cricket player Chris Gayle arrives at the NSW supreme court on Monday for the start of the defamation trial.
After a thorough scrutiny of the allegations, the 4-member jury comprising of three women and one man found that Gayle did not expose his genitals to the masseuse and the publisher was motivated by malice in reporting the false allegation.
"At the end of the day I'm very, very happy", he said, adding that coming to court had been "very emotional".
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Fairfax Media later released a statement saying said the company was "concerned with the conduct of the trial to the extent that on Friday it sought an order that the jury be discharged and a new trial ordered".
"It will cost the company a lot of money unless we can reverse it on appeal", he said.
Fairfax, however, argued the articles were in the public interest and that they were protected under qualified privilege. She alleged he lowered the towel he was wearing and asked: "Are you looking for this?" The cricket star is now even scared of being around women as a result of the allegations, according to cricket coach and close friend of Gayle, Donovan Miller, in testimony during the hearing.
Russell recounted that she later went to the stands and claimed the incident had left her upset and shaken.
A hearing on damages will be held at a later date.