The news is being welcomed by the industry which had feared that FMD had spread outside the controlled zone in Surrey.
The 3km temporary protection zone which was set up around the suspected case, near Dorking in Surrey, has been lifted.
The third farm within the surviellance zone was also cleared earlier from having the disease.
But chief veterinary officer Debby Reynolds urged farmers to maintain "relentless vigilance" in looking for signs of the disease.
She told the BBC the risk of the virus spreading outside Surrey was now "low".