12:30 PM PT -- We just spoke with X-Pac -- who's obviously PUMPED about the situation!

The WWE legend reacted to the good news and even gave us on update on his yeast infection.

X-Pac was telling the TRUTH ... officials say the pills he was carrying at LAX tested NEGATIVE for meth -- and now his drug case is essentially over.

We broke the story, X-Pac was arrested at LAX on April 29 after drug dogs found pills in his luggage that officials believed to be meth. He was booked for possession of narcotics with intent to sell.

X-Pac (real name Sean Waltman) denied the allegations and said the pills were a non-meth medicine to treat a yeast infection.

TMZ Sports has obtained official documents showing the L.A. County District Attorney tested the pills which all came back as "no controlled substance."

As for the weed X-Pac was carrying at the time, officials say it was a legal amount in the state of California.

"There may be a federal crime here, but there's no state crime," the D.A. noted. Our law enforcement sources say the case is over.