Charges of unbecoming behaviour and detrimental public comment were withdrawn by mutual agreement after the three-hour hearing in Sydney on Wednesday.
Instead, Lee was invited to take a bigger role by advising a Cricket NSW sub-committee to be set up looking at the future direction of cricket in the state.
"I'm really, really pleased with the outcome," Lee said.
"For them to drop all charges in regards to bringing the game into disrepute I'm really happy about."
Lee was issued with a breach notice after taking aim at Gilbert following the sacking of NSW coach Anthony Stuart last month.
"It should have been at the top, Dave Gilbert. He should've been made to go," Lee told the Sun Herald on December 23.
As a current player with the Sydney Sixers in the Big Bash League, Lee was slapped with two charges following a report from Cricket NSW.
Lee refused to back down as he vowed to air his grievances during the hearing.
The former Test spearhead questioned the appointment of Stuart ahead of Trevor Bayliss as coach and the departure of young batsmen Phil Hughes and Usman Khawaja to rival states - where they have since catapulted themselves back into the Australian Test set-up.
He was now hoping to have a positive influence on the NSW side.
"I'm looking forward in the next seven to 12 days to meet with the sub-committee of the board to move forward and get this state back where it used to be," Lee said.
"The last 10 years it's been going through some tough times. I'm actually looking forward to improving that and getting NSW back to where it was.
"I bleed blue and that's a huge part of me."
When asked if Cricket NSW could rise back to the top with Gilbert at the helm Lee said: "We'll have to wait and see, won't we? I'm not really in a position to comment on that."